Iconic US retailer Barney's files for Chapter 11

US luxury clothing retailer Barney's filed for Chapter 11 bankruptcy protection on Tuesday, citing a "challenging retail environment" and "excessively high" rents.

Barney's filing will allow the group, which has secured $75.0m from affiliates of Hilco Global and the Gordon Brothers to help fulfill its financial commitments, to conduct a sale process, review its current leases and optimise operations.

The New York City-based company has been unable to afford rental costs on its flagship locations due to lost foot traffic as a result of the advent of online shopping. Barney's bankruptcy papers revealed the company owed almost $10.0m-worth of unpaid rent to its major landlords.

Chief executive Daniella Vitale said: "Like many in our industry, Barneys New York's financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand."

Barneys will now look for a buyer to keep five of its flagship stores and two warehouse locations open — most notably those in high-income markets such as Manhattan, Boston, San Francisco and Beverly Hills. However, the iconic retailer will close stores in the likes of Chicago, Las Vegas and Seattle.