Will Barneys New York Make a Comeback? Inside ABG’s Bid to Revive One of Retail’s Toughest Turnaround Stories

Authentic Brands Group is moving forward with plans to bring Barneys New York back to 660 Madison Avenue, the site of its flagship store from 1993 until its 2019 bankruptcy.

Salter has proposed a lease tied to store performance rather than a fixed rent to Ashkenazy Acquisition Corporation, which manages the property. While the landlord is said to be cautious about the terms, negotiations remain ongoing.

The renewed momentum follows the January 2026 bankruptcy of Saks Global. When Saks acquired Barneys in 2019, it secured exclusive U.S. retail rights, effectively preventing the brand from operating independently. With Saks’ collapse, those restrictions have now been lifted.

The Operator Question

A key issue remains unresolved: who will run the store.

According to multiple reports, ABG has approached Richard Cohen, former CEO of Ermenegildo Zegna, to lead the flagship’s operations.

ABG owns a portfolio of brands including Brooks Brothers, Juicy Couture, and Nautica. However, its core model is built on licensing rather than direct retail operations. Running a full-scale department store falls outside its primary expertise, making the appointment of an experienced operator critical.

Operating a luxury department store of approximately 220,000 square feet requires strong merchandising judgment, deep relationships with brands, and a clear curatorial vision. Under a revenue-linked lease structure, store performance directly translates into the landlord’s income, making the operator’s capabilities a decisive factor in the venture’s success.

A Smaller Bet in Florida

Beyond New York, ABG is also planning a smaller-format Barneys location in Naples, Florida, set to open in 2027.

At roughly one-tenth the size of the proposed flagship, the store will serve as a testing ground in a high-net-worth, resort-driven market. The strategy reflects a more measured approach—balancing brand visibility with operational flexibility.

Founded in 1923 as a men’s discount clothing store on Seventh Avenue, Barneys New York evolved into one of America’s most influential luxury retailers. However, rising rents and the growth of e-commerce led to its Chapter 11 filing in August 2019. ABG acquired the brand’s intellectual property later that year.

In August 2024, Barneys made a temporary return through a pop-up in SoHo, located at 14 Prince Street, in collaboration with beauty brand Hourglass.

A Test of the Department Store Model

As the department store model itself comes under increasing scrutiny, the success of Barneys’ comeback remains uncertain. In recent years, the luxury retail landscape has shifted, with consumer interest moving away from products themselves toward experiential value, calling into question the very relevance of the traditional department store format.

The factors behind Barneys’ 2019 bankruptcy—operational inefficiencies tied to large-scale stores, a slow response to the rise of e-commerce, and soaring rents—have not been fully resolved. These structural challenges continue to persist today.

In that sense, the current reopening effort is not about reviving a past success model, but rather about whether a new form of retail—one that aligns with today’s market environment—can be successfully built.

At the same time, the feasibility of a comeback has strengthened. With Saks’ collapse removing key legal barriers, and Authentic Brands Group actively advancing negotiations and securing an operating partner, Barneys’ return to Madison Avenue is now closer than at any point since 2019.