EXHIBIT 99.1
ALLEN QUESTROM TO RESIGN AS CEO OF BARNEYS NEW YORK
QUESTROM TO REMAIN CHAIRMAN AND LEAD PROCESS TO SELECT SUCCESSOR
New York, New York, July 27, 2000 - Barneys New York, Inc. announced today that
Allen Questrom will resign as President and Chief Executive Officer effective
September 15, 2000. He will continue in his role as Chairman of Barneys' Board
of Directors. With Barneys now re-energized, Questrom is leaving to become the
Chief Executive officer of J.C. Penney Company, Inc.
Mr. Questrom, a seasoned retail manager, was hired by Barneys as President and
Chief Executive Officer in May 1999 to initiate the growth of its business
following the Company's emergence from bankruptcy in January 1999.
Allen Questrom stated, "When I joined Barneys, we had several objectives to
achieve. First and foremost, we wanted to ensure that Barneys had a solid
foundation, both operationally and financially. With the support and
encouragement of our principal investors, Whippoorwill Associates, Inc. and Bay
Harbour Management, we accomplished our objective. With a good start to the
first six months of the new fiscal year following strong results in fiscal 1999,
I believe that the Company is poised for continued growth in both sales and
earnings. Our next objective focused on initiating the growth phase of the
Company. Having put in place several new initiatives, including the expansion of
our Barneys Coop business and the development of a new strategic plan and
capital expenditure program, I am confident and comfortable in moving on to new
challenges."
Mr. Questrom added, "Barneys is fortunate to have some of the best fashion and
retail talent in the industry, attractive flagship stores, and a cachet that is
unrivaled in the luxury market. I continue to believe in Barneys, its people,
and its future prospects."
Mr. Questrom will lead the process to select his successor from among a short
list of potential candidates The other members of the search committee are
directors David A. Strumwasser, a principal of Whippoorwill Associates, and
Douglas P. Teitelbaum, managing principal of Bay Harbour, and Vice Chairman
Robert J. Tarr, Jr., former Chief Executive Officer of Neiman Marcus Group Inc.
Whippoorwill and Bay Harbour, who together control over 80% of Barneys' common
shares, jointly stated, "We are very fortunate to have had Allen Questrom serve
as our Chief Executive, and congratulate him on the strong results he has
achieved at Barneys. He has truly revitalized the Company and we are confident
that our talented organization has the ability and determination to achieve the
vision that Allen helped us create. We very much look forward to Allen's
continued advice and counsel as Chairman of the Board. Of course, we wish him
every success in his new position at J.C. Penney."
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Barneys New York is a luxury retailer with flagship stores in New York City,
Beverly Hills and Chicago. In addition, the Company operates five regional full
price stores, eight outlet stores and two semi-annual warehouse sale events. The
Company also maintains corporate offices in New York City, and an administrative
and distribution center in Lyndhurst, New Jersey and has 1,400 employees.
Except for the historical information contained herein, information set forth in
this release may contain forward-looking statements subject to risks and
uncertainties which could cause the Company's actual results or performance to
differ materially from those expressed or implied in such statements. For
additional information about the Company and its various risk factors, reference
is made to the Company's Annual Report on Form 10-K for the fiscal year ended
January 29, 2000, as filed with the Securities and Exchange Commission.
CONTACT; David Walke or Stacy Roth of Morgen-Walke Associates, Inc.,
212-850-5600.
