Barneys to Stay on Madison Despite Rent HikeThe retailer said it is “disappointed” by the outcome of its arbitration with its landlord. granting a significant rent increase.

[Collection]Barneys isn’t abandoning Madison Avenue, but will have to absorb a significant hike in its rent there come next year. Speculation that Barneys would either vacate its 230,000-square-foot flagship or downsize it in face of the looming rent increase has been around for months as negotiations with the landlord Ashkenazy Acquistion Corp. were proceeding. However, Barneys officials told WWD there are no plans to vacate or downsize the premises. That said, Barneys is “disappointed” by the outcome of its arbitration with Ashkenazy granting a significant rent increase on Madison Avenue. “The arbitration decision that came down (Friday) does grant Ashkenazy Acquisition Corp. an increase in rent although not quite to the magnitude previously reported. While we are disappointed with the decision, our customers remain our top priority and we continue to be committed to providing them excellent service, products and experiences at our Madison Avenue location,” said a Barneys official. One media report indicating that Barneys’ total tab to the landlord on Madison Avenue, including a doubling of the rent plus other expenses, would be $44 million, was incorrect. Barneys has been paying well below market rates on Madison Avenue. The rent has been set around $16 million. The lease was signed back in the late

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