Barneys New York is hanging up its spurs in Texas.
The swanky luxury chain is closing its struggling store in Dallas in April to focus on better-performing locations in cities such as New York and Los Angeles.
“After careful consideration, Barneys New York has exercised its contractual right to terminate the lease for its Dallas location prior to its expiration,” a spokesperson said.
Retail insiders said there wasn’t much to consider, as the Dallas store was among Barneys’ biggest losers following an ill-advised expansion under the retailer’s previous owner, Istithmar.
The Dubai-based private-equity fund acquired Barneys in 2007 for $942 million before surrendering control earlier this year to New York hedge-fund tycoon Richard Perry, who had amassed a big chunk of Barneys’ debt.
Sources said Barneys would benefit from exiting onerous leases in other cities, including Boston, Seattle and Scottsdale, Ariz.
The Dallas lease had been set to expire in four years, according to a person close to the situation.
“Barneys’ operational and financial performance is strong and we remain focused on investing in our flagship stores across the country as well as Barneys.com,” the company said in a statement.
Retail experts had been skeptical of the Dallas store’s prospects since Barneys opened it in fall 2006, at the height of the luxury boom.
Some had questioned whether Barneys’ edgy image would attract many customers in Dallas, where shoppers’ tastes run to the conservative side.
But the bigger problem may have been that the store was opened in the hometown of much larger rival Neiman Marcus, which operates two prominent stores in Dallas.
“They opened just a few hundred feet away from one of Neiman’s biggest, busiest stores,” said one retail source, referring to the Barneys location at Northpark Mall in Dallas. “They never stood a chance.”