The $937 Million Luxury Empire That Collapsed Twice: The Barneys Dynasty скачать в хорошем качестве

The $937 Million Luxury Empire That Collapsed Twice: The Barneys Dynasty

Barneys New York introduced Giorgio Armani, Comme des Garçons, and Christian Louboutin to America before filing for bankruptcy twice—first in 1996 after a $168 million Isetan lawsuit, then catastrophically in 2019 following Dubai's $825 million leveraged buyout. The Pressman family dynasty that began with a pawned $500 engagement ring ended with tax fraud accusations and disinheritance lawsuits. ------------------- Gain FREE access to secret full-length documentaries on wealthy families "too scandalous for YouTube" by joining our newsletter: https://www.substack.com/@oldmoneyluxury ------------------- TIMESTAMPS 0:00 Introduction 1:36 Chapter 1: The Madison Avenue Monument 5:55 Chapter 2: The Ring and the Rag Trade 10:15 Chapter Three: The Isetan Disaster 14:02 Chapter Four: The Dubai Catastrophe 17:51 Chapter Five: The Rent That Killed an Empire 21:21 Chapter Six: One Last Goodbye ------------------- In February 2020, the Madison Avenue flagship of Barneys New York displayed bright orange discount signs advertising 90% off while remaining merchandise sold from bins. This was the store that introduced Giorgio Armani to America in 1976 and brought Comme des Garçons, Christian Louboutin, and Azzedine Alaïa to American consumers before anyone else knew their names. The Madison Avenue flagship sprawled across 230,000 square feet designed by Kohn Pedersen Fox and finished in goatskin and Carrara marble, generating approximately one-third of total company revenue. In 2004, Jones Apparel Group paid $400 million to acquire the company, and three years later, Dubai's Istithmar World paid $825 million more. When Phyllis Pressman died in April 2024 at 95, her estate included a 2.3-acre Southampton oceanfront compound listed at $38 million and a jewelry collection featuring Harry Winston diamonds and Van Cleef & Arpels pieces. Her husband Fred, who died of pancreatic cancer in 1996 at 73, had been the architect of Barneys' transformation from discount clothier to luxury destination. Barney Pressman was born December 14, 1894, on Elizabeth Street in the Lower East Side of Manhattan, one of seven children in a neighborhood that was the center of the American garment industry. By his late twenties, he had married Bertha, and in 1923, he saw an opportunity: a 500-square-foot retail space at Seventh Avenue and 17th Street. The lease cost $500, which Barney did not have, so Bertha handed him her engagement ring and he pawned it. By 1950, Barneys sold more suits than any single store in the world, and by 1973, the inventory included 60,000 suits. Barney died August 24, 1991, at 96 years old, his funeral held at Central Synagogue in Manhattan. In 1989, Gene and Bob Pressman formed a holding company with Isetan, one of Japan's premier department stores, calling for approximately $250 million in investment to open 30 new stores. The 1993 opening of the Madison Avenue flagship marked the pinnacle of 230,000 square feet of luxury retail. On January 11, 1996, Barneys filed for Chapter 11 bankruptcy protection, listing assets of $381 million and liabilities of $361 million. Isetan filed suit against Gene and Bob personally, seeking to recover approximately $168 million in short-term loans. Bob's sisters sued him for $30 million after the bankruptcy, claiming he had stolen from the company. Jones Apparel Group purchased Barneys in 2004 for $400 million, ending 81 years of Pressman family ownership. In 2007, Jones sold to Istithmar World for $825 million, loading the company with between $500 and $660 million in debt. Within 18 months, the 2008 financial crisis struck, decimating demand for luxury goods. In November 2009, Dubai World announced a standstill request on $59 billion in liabilities as the emirate's property values collapsed. In May 2012, Perry Capital orchestrated a debt-for-equity swap that reduced long-term debt from $590 million to $50 million. On August 10, 2018, an arbitrator ruled that landlord Ashkenazy could raise the rent at 660 Madison Avenue from $16 million annually to $30 million—nearly double. With property taxes and expenses, Barneys' total annual obligation escalated to over $44 million. On August 6, 2019, Barneys filed for Chapter 11 bankruptcy for the second time, listing $200 million in funded debt against $800 million in annual revenue. The Row was owed $3.7 million, Celine was owed $2.7 million, Saint Laurent $2.2 million, and Balenciaga $2.1 million. On October 24, 2019, a bankruptcy court approved the sale of Barneys to Authentic Brands Group for $271 million. On February 23, 2020, all remaining Barneys stores permanently closed, with 719 employees losing their jobs at the Madison Avenue flagship alone. In July 2025, Bob Pressman filed a lawsuit alleging his late mother Phyllis and siblings orchestrated a scheme to evade more than $20 million in New York state income and estate taxes.