After rent hike, Barneys extends credit line

The retailer now has $50M in credit thanks to deal with Wells Fargo, TPG Sixth Street Partners

New York Weekend Edition /
Apr.April 07, 2019 10:00 AM

Barneys at 660 Madison Avenue (Credit: iStock, Google Maps)

A rent hike at Barneys New York’s flagship store already seems to be impacting the luxury retailer.

In January, the rent at 660 Madison Avenue officially jumped to about $30 million in January from $16 million and the retailer, which has about $850 million in sales, extended the term of its credit line by $50 million, CNBC reported. The deal extends the retailer’s credit agreement with Wells Fargo and loops in TPG Sixth Street Partners as a lender.

Sources also told CNBC that the spike wiped out the retailer’s EBITDA — or earnings before interest, tax, depreciation and amortization, though Barneys said the outlet its EBITDA remains positive.

The markup wasn’t a surprise; Barneys and landlord Ashkenazy Acquisition’s battle over the rent increase has been raging since 2016. The move became final after a city arbitrator last year set the $30 million figure, nearly doubling the retailer’s rent.

Last month, Barneys was reportedly planning to reduce its footprint at 660 Madison Avenue by half, but company officials refuted the report. [CNBC] — Mary Diduch


Related Articles

arrow_forward_ios
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
Michael Remer and Richard Hodos (JLL, Getty)
Top retail broker Richard Hodos jumps from CBRE to JLL
Top retail broker Richard Hodos jumps from CBRE to JLL
RIPCO Real Estate’s Gene Spiegelman and Peter Ripka, JLL’s Matthew Ogle and Erin Grace (RIPCONY, JLL, Getty)
RIPCO, JLL take home REBNY’s retail deal of the year awards
RIPCO, JLL take home REBNY’s retail deal of the year awards
Ben Ashkenazy with 2067 Broadway (Google Maps, Getty)
Ashkenazy, Gindis face UWS foreclosure as feud drags on
Ashkenazy, Gindis face UWS foreclosure as feud drags on
Ben Ashkenazy with 660 Madison Ave
Louis Vuitton pop-up headed to former Barneys space
Louis Vuitton pop-up headed to former Barneys space
Michael Jordan with 1 West 34th Street
Sneaker shop makes big jump to 1 West 34th Street
Sneaker shop makes big jump to 1 West 34th Street
50 Pennsylvania Avenue (LinkedIn, Pennrose)
Supermarket nabs 20K sf at Pennrose project in Brooklyn
Supermarket nabs 20K sf at Pennrose project in Brooklyn
Ben Ashkenazy goes on the offensive
Ben Ashkenazy goes on the offensive
Ben Ashkenazy goes on the offensive
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...