Got union representation? No? Then this is the consequence: a free fall from an already tenuous position into catastrophic poverty. How many American industries pander to the wealthy, as Barney's was devised to, such as real estate title companies, where the average schmo makes a trifle compared to the clientele? No one gets exercised about the gulf yawning between the wealthy and the rest of us, because secretly everyone thinks he or she will somehow jump over that divide. High time we started to build bridges across it and lay siege to the bastions of the precious children of privilege.
26
@Tournachonadar We are represented by the Local 340 union and it's in our handbook that we're contractually obligated to receive a severance.
25
Sad; it just confirms the cardinal rule that we "save and live below our means...!"
6
In the 40 years I spent in the fashion industry I can count on 3 fingers the number of employers who actually cared about their staff during a transition. This is a business predominantly overseen by an elite group of people who treat their staff like the hired help at home. I really feel for the staff at Barneys, been in their shoes. Hustle and find your next job (NOT an unpaid internship) and just leave. Let them fend for themselves. Management. Doesn't. Care. They. Never. Did.
34
I think these places like to play employees along by dangling the carrot out in front of them to keep them chasing after it (whatever it is) so some might be foolish enough to think if thy just hssng around long enoug they will get 'somthing';. Of course they don't want to have to bring in temp workers while thy are unwinding. On the other hand the employees are "free to go* and hanging around looking for a little hand-out at the end is not a great move unless you don't want to work for a while. Everyone is a cry-baby these days; everyone feels "used" they just complain when they get media attention. "Do you have any complaints about your job?" "Well, no I love it here. They treated me well. I learned a lot to take with me into the future. I will miss my great job." No. No one says that. Ever. Also unemployment insurance if you lose your job because the company eliminated it. So they won't be left empty handed.
1
whenever someone holds a "glamour job" at one of these high - end retailers and then loses it, and then claims the competition is offering much less, i always wonder if they were simply all overpaid in the past
@AC No, they weren't overpaid. They directly contributed to the profits of luxury retailer Barneys and deserved to be fairly compensated for their work.
59
Make no mistake, Barneys is where we are today due to entitled untalented leadership who literally ran us into the ground, set it on fire as they stood back and watched it burnt to ashes. They're remodeling their apartments for magazine photo spreads, going to wellness retreats and deciding where to vacation next while we are left to look for jobs. I didn't expect to have to experience the worst case scenario as far as leaving my job at Barneys, but that's what appears to be happening.
54
@Rufusred You and the other staff is what made Barneys special, not just the merchandise. This is a classic case of greedy, sloppy mismanagement and lack of foresight. I wish you well.
36
@Wendell Thank you. This has been a horrible experience and now we're facing the grand finale of misery if you will. Perhaps this article will inspire a sea change where the end will be what my colleagues and I deserve, not what we're dreading.
11
Barneys had the best men's store in NYC, all the employees were great.
I've NEVER heard of employees receiving severance in a bankruptcy. It happens with corporate mergers and senior employee buyouts. It's all false hope/smoke and mirrors, get another job or take your unemployment.
Jesus, I thought that main store would stay open or find another location. Sad and depressing to see it and the employees exploited as a Dollar Discount store. I'm not a snob, I shop everywhere in NYC but that Barneys store was an icon of style/quality. No other store came close.
14
To Barneys' workers, get another job as quickly as possible. Forget about loyalty. You may feel some loyalty to Barneys, but in business the loyalty factor is not reciprocal. Barneys and its new owners are not your friends. From the article it come across that Barneys and its new owners don't care about you or your families. Barneys doesn't have the money for severance packages. Hopefully, you'll get a paycheck for work done. The writing was on the wall many years ago. Barneys was in the business of selling overpriced stuff and the overpriced stuff customers have gone elsewhere.
30
We have a couple of hundred bucks to pay on our @barney’s credit card that is no longer accepted at the store or online. Once it’s paid off we won’t close the account with Comenity Bank so as NOT to negative affect our credit rating. Thanks BARNEY’s‼️
3
Barneys to Staff: We don't have enough money to pay your legal severance, and your paychecks may be delayed.
--Also, please don't steal during the liquidation sale.
The final humliation will be when the "liquidation specialist" brings in tons of cheap merchandise to sell to the crowds that show up when everything is "80% off". The good stuff will be sold elsewhere and the naive will paw through mounds of third-rate stuff that was never sold in Barneys prior.
This happened at Gumps in San Francisco last year.
25
Looking at the photos, I see that a T-shirt, with material as thin as T-shirts from big box discount stores, had a $119 price tag. No wonder Barneys is going out of business.
4
@Linda I believe that is a t-shirt that came from H&M (see the tag underneath the $119 price tag) which does sell cheap goods.
If you read the article, a staffer says the bankruptcy company is bringing in clothing, rugs and furs from other retailers.
So yes, Barneys is selling cheap goods now, but they're not from Barneys.
12
In the US work isn't valued, although it creates much of the wealth that funds the system that guarantees that work isn't valued.
I'm very sorry that everyone is being treated so badly. I hope everyone who cares figures out which political party supports workers and which does not, and votes accordingly.
26
I'm confused that these "loyal" workers are so surprised that they are being treated so badly by Barneys. Seriously, what did they expect? Those in charge are getting their compensation, probably in the millions, plus new jobs. They care nothing about the worker bees who have spent years making Barneys great. Those left behind need to send out resumes and make plans pronto and leave as soon as they can. There will most like be little to no severance pay for these people. It's sad and I wish the best for all of them but, that's life these days.
25
Once again the workers who "made" the store are getting the very short end of the stick.
Are we "great" yet?
61
Sadly, no surprise here. Barneys had always been consistently very delinquent in paying their bills for years. There were instances where contractors were not payed anything for 4-6 months beyond the net terms of their contracts. It will likely only get worse.
Barneys should have shuttered its doors at least 2 years ago and given those that have been loyal to the company fair and respectful compensation.
Most companies in this position do exactly the same. Put their heads in the sand, spend even more, and think that technology alone will be enough to save their failing brand even as they've lost their understanding of who their true customer is. (Amazon was not the culprit here folks.)
27
It's not looking good for retail workers. Bose just announced they are closing all their retail stores and they will sell most of their speakers, headphones and other products online. Amazon has killed so many jobs, retail property, and satellite companies that are involved in the retail industry.
31
'Liquidation specialists.' Now there's a fashionable way to describe the fickle, ephemeral world of fashion and its clinical underbelly. While too little of a consolation prize for those who are its victims, hopefully its duration will be shorter than that of Sears.
12
They should really make the worst case scenario. Alas, if they have this disgruntled attitude, it is possible it might have transmitted to the customers. Look, retail is hard in the era of online shopping and trade wars, but Nostrum actually has set up shop in NYC and Macy is still profitable. Barneys is an high end store and they should be mindful of that.
Note: readers who call for unionization as if it were a panacea. While it could be a case of rapacious finance geeks putting Barneys to the blink, old style retail folks don't want this to happen either
3
@Bos I believe their disgruntled attitude came after the bankruptcy, from not knowing if/when the will be paid, and most likely feeling worried about their future. After all, hey're only human.
I'm not even close to rich, but when I shopped for small, in expensive items at Barneys, the staff, from doormen to sales clerks, were always professional and friendly.
The issue is Barneys management, not the staff.
14
Unless you work at a ‘Mom & Pop’ store, and your employers are actually your mom and pop, the company is not your friend and does not care about your life. Workers must collectively demand contracts that contain enforceable guarantees which can protect them when a business fails. Barney’s employees are lucky to have some representation by a union, but almost no retail workers have that option - most retail chains will close any store where the workers seek representation, rather than permit unionization.
61
It is time for a law direct that in bankruptcy, the first items paid out of remaining assets be workers' wages and severances!! And, any assets paid out of the company by management or investors during the two years prior to the bankruptcy should be returned to the company coffers to satisfy workers' claims as above!!!
55
@MGerar
YES, I have never understood why judges cerfify bankrupcy plans that provide golden parachute plans for executives while raiding pension plans e.g
As a matter of public policy these plans should have been voided by the judges.
51
@A.C.
Absolutely. We need to update the bankruptcy code to put employees first! The PE Wall Street guys still will be fine.
31
Declines in foot traffic could be absorbed if these retailers were not loaded up with debt by their private equity owners/vultures. The margins are so thin in retail, that any fall in sales cannot be handled with the huge debt loads borne by these stores. That being said, Barney’s day has come ad gone.
27
In a bankruptcy proceeding most of the old rules get thrown out the window. The bankruptcy judge has wide latitude to approve and administer a plan that most benefits the creditors.
That's the law. Period.
7
Boo Hoo. Some snippy guys and gals who made a living selling grossly overpriced (and oft ugly) items will have to find other work. I can hear the worlds smallest violin playing on their Musak.
10
@mediapizza so you’re siding with the venture capitalists/ one-percenters. Good for you.
48
@mediapizza
Hopefully you'll never be presented with the reality these people are having to deal with regardless of profession.
41
Many years ago I walked into Barney's during its heyday. The sales people walked around like they were the greatest thing since sliced bread. I sure they never realized that all bread has a shelf life.
Hey retail employees: remember you don't count, and your employer has only one concern and it isn't you.
28
@george eliot - I shopped at Barneys in Manhattan for years and not once did I ever find the sales people to be anything short of helpful and friendly but then you get back what you put out.
38
@Jim I agree with Jim. Although I am a Canadian citizen I had the great opportunity to work and live in NYC from 1995 to 2207 and while doing so shopped regularly at Barney's on Fifth. I cannot speak for all departments in the store but in men's gloves and sweaters the staff were very friendly, helpful and not in the least uppity. My favourite clerk of all time with a twinkle in her eye telling me she was in on the joke too regularly sold me water glasses at 75 $ each.
13
So just quit. Best job market in a generation. Go somewhere else.
10
Not very empathetic, are we?
37
@Peter
Have you attempted looking for a (good) job in the real world lately?
63
@Peter: Great job market, if you’re willing to accept peanuts while juggling numerous positions. There is plenty of work, but important to realize that the available jobs are a financial joke.
74
Barney’s, Borden, TOYS R US , and other large companies going bankrupt abruptly is a cautionary of the greed by private equity firms. They, like Dracula, suck the working class dry and leave them hanging. I guarantee you the firm that owned Barney’s made out like a thief in the night, but the workers can barely get a severance. This is shameful that they Gave this company their labour and devotion just to see it result in nothing. And what happens when they can’t find equal employment, pay or benefits? This isn’t just a lose for Barney’s workers, but the continual erosion of the working class by private equity.
88
@Commenter
The reason retailers are going out of business today is primarily due to the overall decline in physical store traffic as more business shifts to the internet (and those retailers who have successful on-line businesses) as well as generational lifestyle changes which have disproportionately impacted the clothing business. This has little to do with corporate greed, although that certainly can and does manifest itself in the way these shutdowns are handled.
8
@EdNY
It has a great deal to do with greed.
Numerous retailers have been repeatedly bought by venture capital firms - with each owner taking a hunk of capital out of the company.
Toys R Us was repeatedly looted.
37
@EdNY
I’m sorry, but that isn’t true. Nordstrom just expanded into NYC with three stores. It all comes down to greed and the willingness to stiff hard working people for a little more profit.
22
To be honest like any other group of people some of the Barney’s sales folks could be very off putting and haute superior. I once stopped by to pick up a gift and felt I was totally being sized us “not a Barney’s type”. However when I asked for a specific item that was very pricey by name the attitude suddenly changed. I hope the truly nice non judgmental and hard working people are able to find well paying jobs. As for the others maybe this trial by fire will help them recognize an opportunity for self-development.
20
The employees, or the NYT, need to reach out to the Labor Dept in NY and ask them to reach out to Barney's for the information.
Typically, when companies close, they notify and work with the local Labor Dept. In this case, it seems Barney's is determined to ruin their legacy and go down in shame.
Barneys is expected to treat their valuable employees with the dignity and integrity they deserve until the end.
25
The markdowns were hardly spectacular. As part of their regular end-of-season sales, Saks, Bloomingdales, Bergdorf-Goodman, Neiman-Marcus, and others were having 40-60% markdowns on their fashion items. Barneys, by contrast was only 10% or perhaps 20% markdowns. Why bother with Barneys?
Thus, it is not surprising that the markdown sale has been underperforming.
17
@Mike
Clothing sold at department stores is one of the highest markup products around. The profit on clothing is usually 200% of wholesale. So that $1000 bath mat at Barneys discounted 50% is still profitable.
I've been to the Barneys and Saks sales, and they're jokes, Plus just about everything that is "trendy" that is sold at stores like Barneys will make you look like a fool cause it's out of style by the time it goes on sale.
If there's lots of loss in the liquidation, good riddance.
NYC needs another bank branch in that location anyway.
7
I feel sad for the employees. Barneys had some of the best people in retail. A lot of fashion expertise combined with great customer care.
The most fun I’ve ever had shopping was at Barneys. The employees knew my name, remembered what I had bought in the past and had suggestions of new things I might like. That level of customer service was the reason why I’d go there, instead of Saks, Bergdorf Goodman or brand stores.
Fashion and retail are a tough business. Barneys had a great run. But I’m sorry to see the employees being treated like this. Hoping they all find good jobs elsewhere.
79
Why are you folks still there? You are going to get shafted and you are losing time that could be spent looking for a better job. In a bankruptcy, employees come last, you may not get your final pay check, if you do make sure you are paid for accrued vacation and sick leave. If your pay is late for any reason, walk. Otherwise you are working for free. The company has no loyalty to you at all, they are just trying to eek out the last few bucks for their creditors and you are an expense, you owe them nothing, bail while you can.
23
If an employee walks out on their own will they are not eligible for unemployment benefits. I’m sure many could use them while in their upcoming transition.
44
Despicable. Employees should always come first--over management, investors, stakeholders. I bought my first suit at Barney's at 7th and 7th in 1968.
45
Seems to me that the City ... who collected many millions of dollars in Sales Tax over the years ... owes at least as much to these employees as they belatedly decided they owed to cab drivers, some of whom were driven to suicide by Uber-friendly deals the TLC and others "blessed."
Certainly, if we had a Public Advocate worth "spit," these true and awful vultures wouldn't get away with what they so obviously are getting away with.
Severance benefits and the theft of same ... is every bit as bad when the employees WERE ONCE! well-paid as it is when they are "new Americans" and a different set of thieves and criminals-pretending-to-be-businessmen steal from them.
11
@edTow
You're joking right? The city (i.e., New York State) should not spend a sidewalk penny bailing out Barneys or even one of their employees. Aside from the sales tax you mentioned (which every retailer in NYS is required to collect), every employee paid a portion of their check to unemployment insurance. If they want a job or severance, they already paid for it and need just get on line at the unemployment or welfare office.
6
@edTow
When you say the "City", you mean the city's taxpayers like you and me.
No. The city doesn't bail out private enterprise failures with my money.
4
@Will.
You guys are "tough" - in a bully sort of/NOT MY problem way. I get Ayn Rand and her ilk, but too often, it seems to me, people born with a silver spoon in their mouth subscribe to and fund this odious "ideology" out of piggy self-interest.
The end product is opiate manufacturers who say, "OK, we made billions and ruined millions of lives. SO?"
I'm sure we're poles apart as to what government "owes" its citizens, but since we've "evolved" into a system where a great deal of "compensation" comes after one's working life concludes, the really bad actors who steal wages are no different from the folks looking to wring every dime out of the Barney's name & previous liquidity. There should be limits when - as I say - party A is essentially stealing from party B.
Of course, the first choice is to make the defrauded party whole by moving a slice of the pie from the gluttons to those who are on the verge of being robbed.
AND legislation - it exists re pensions at the Federal level, of course - needs to be written.
OK, maybe, NYC's or NYS' govt "making the workers whole" is a non-starter, but there have to be consequences for immoral behavior - or there will just be more & more of it.
Pawnbrokers are regulated, payday lenders a lot less and "the mob" not at all. I'm all for the govt going after MS-13, but - was it Dylan who said it? - you can rob "as well" with a pen as you can with a gun.
10
Don't feel used or be used for that matter, leave and get another job.
7
@James
If they leave, they won 't receive their severance. After sticking with Barneys until the end, they deserve it.
35
And unemployment benefits.
24
@Gus
If there was $2 million in the bankruptcy plan for 2,000 employees, it means they were expecting an average of less than $1,000 per employee and almost half is gone.
The employees need to be looking for new jobs. If they find a new job, they don't need unemployment insurance, and it's not worth missing a new opportunity for the severance likely to be paid. There's a reason why management is not communicating to the employees what they're likely to get.
7
How sad, Barney's was a benchmark for me. When I was in nursing school I told a classmate that I would know I had attained financial sucess when I was able to shop at Barney's. This great store and it's sales people deserved a more dignified end.
49
A very unsavory end to what was a great NY institution----when it was on 7th ave and 17th st.
31
You need to pay and take care of these employees! They have made millions ( maybe billions ) of dollars for you - shame on you!
58
@Hillary LaGattuta , “made millions”! Where have you been Hillary, the company is bankrupt and has lost millions (maybe billions).
1
@James The bankers and vultures and senior people are getting paid.
31
@James
They made plenty of money for decades before their demise.
17
I would use another, more pointed word but my comment would never pass muster:
Scoundrels!
25
Private equity deals push healthy companies into dangerous expansions with the risk for bankruptcy squarely on the shoulders of creditors and employees. The laziest uninventive and corrupt way of making big money.
58
@Hisham Oumlil
The smart money figures out early that the business is on a downward trajectory an gets what they can by selling to private equity that is going to squeeze out the last few drops of blood.
5
I would be willing to bet that the $800,000 severance that has already been paid out went to the management employees who were able to grab the goods before everyone else was even notified of the severance package.
117
Our elected representative in Congress need to pass a Severance Pay Law to require companies over 500 employees (or a certain gross income) to pay a minimum of one week's pay for each year worked. Employees produced profits for companies like Barneys over many years. They should be guaranteed at least this small amount of pay to help them transition to their next job.
88
The new " owner" of Barney's inventory, has made it clear it will not honor any credit vouchers that the consumer holds from a merchandise return. This adds considerable ready cash to the bankrupt company but leaves the consumer empty handed. I returned a $ 181 dress last year July 2019 and did not know that the voucher issued was going to be useless after Aug 2019. This is sheer dishonesty on the part of the new owners since there was no public information campaign to announce a deadline for using the vouchers. The credit vouchers should have been given at least a year's longevity. There goes Barneys good name.
57
After losing $809 in credit at Giggle, another high-end, mismanaged, good-for-nothing-in-the-end brand, I learned a valuable lesson: never ever (!) leave a gift card lying around. Spend. Good old fashion retail is just that...old fashion. Nobody’s going to be around forever.
22
@cindy
Contact the Consumer Protection Agency and file an online complaint. They will hold the company accountable. They made companies honor gift cards and credits that were deemed expired and banned that practice.
Also, contact the Dept of Consumer Affairs in NY. They are very aggressive toward companies ripping off citizens. The more people that complain about being stiffed by Barney's the better.
30
How is it that Barneys was sold for $271m but can't scrape together $4m to pay its severance obligations? Who is the rest of that $271m (and the millions that the liquidator is pulling in) going to?
121
@John Tartaro When they went into bankruptcy, they reportedly had $200+ million in debt; that's part of it - paying off creditors.
6
Employee compensation usually has precendence over creditors. Equity holder are last.
But I fear the top management team (the ones who drove the concern against the wall) exited in a hurry in early November grabbing their full salaries and pension package. Now, of course, for the clerks there's nothing left.
45
Wrong, employees are at the bottom of the bankruptcy list. I know, I worked for Braniff Airways and got a nickel on the dollars they owed me.
29