Barneys aiming to close 2 stores: report

By IBTimes Staff Reporter | May 06 2009 2:32 AM

As the impact of the global recession weighs in on wealthy Americans, high-end retailer Barneys New York Inc aims to close two of its seven department stores, the Wall Street Journal said, citing people familiar with the matter.

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The 85,000 square-foot store at the Shoppes at the Palazzo in Las Vegas is one of the stores that the luxury retailer is trying to close, the people told the paper.

The location of the other store could not be immediately determined, the paper said.

Barneys had expected to generate $6 million a month in sales at the Las Vegas store, but the company has managed to earn only a quarter of that since last autumn, a person familiar with the issue told the paper.

Dubai's Istithmar World Capital owns the luxury retailer, which has stores in New York, Beverly Hills, Chicago, Boston, Dallas, San Francisco and Las Vegas.

Reuters attempts to contact Barneys outside of normal business hours were unsuccessful.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Muralikumar Anantharaman)