According to the New York Times, the end of Barney’s, the famed department store, involved executives crisscrossing the globe, all-night strategy sessions, last-minute alliances, and attempts to sway public opinion. However, all these attempts led to bankruptcy.
Questions:
- What happened to Barney’s in bankruptcy court?
- How many full-time employees will be affected?
- Gene Pressman, a member of Barney’s founding family, thought about buying the store, but what issue prevented him from buying it?
- What firm is known for buying the intellectual property of flailing retailers and was the major buyer of Barney’s?
- What does the company in Question 4 do with the intellectual property? How do you think the buyer should record this in the accounting records?
Source:
Friedman, V. and S. Maheshwari. (2019). Barney’s New York is Sold for Scrap, Ending an Era. The New York Times, Nov. 1 (Retrievable online at https://www.nytimes.com/2019/11/01/business/media/barneys-bankruptcy-authentic-brands.html)