Barney’s Reorganization Wins Court OK

Barney’s Inc., the fashion retail chain, won court approval for its reorganization plan, bringing to a close nearly three years of bankruptcy proceedings. U.S. Bankruptcy Judge James Garrity approved the plan, which will inject $68.8 million of new capital into the business and hand family control to creditors. The company’s biggest unsecured creditors include Whippoorwill Associates Inc. and Bay Harbour Management. The New York-based retailer sought Chapter 11 bankruptcy protection from creditors in January 1996 after a dispute with Tokyo-based Isetan Co., which provided a $600-million capital investment for Barney’s three biggest stores. The reorganization plan resolves Isetan’s dispute with Barney’s by giving the Japanese retailer the three big Barney’s stores in New York, Chicago and Beverly Hills, along with other payments.