While Hermes posted steady gains this week and Moody's actually upgraded the status of Neiman Marcus, luxury retailer (and New York mainstay) Barneys endured a serious setback when Moody's downgraded the store yesterday.
WWD reports that Moody's took Barneys' credit rating from a lukewarm "Caa1" to a dismal "Caa3". Things just don't look so great for the department store as the brand's cash flow continues on its slippery, negative slope that was first marked for caution in November 2008. The, er, good news is that the downgrade isn't all that drastic. It's like going from a D+ to a D -- either way, you're grounded.
We're putting our money on the Warehouse Sale - this isn't the first time we've believed it really does cure all. Or maybe, Barneys should take some advice from within its own ranks and start "mooching."
