Up-to-date coverage of the latest events in UK retail.

Barneys New York on brink of collapse

Barneys New York is facing a race for survival after filing for Chapter 11 bankruptcy and putting itself up for sale.

The business secured a $75m (£61m) cash injection from Hilco Global and Gordon Brothers to stay afloat but said it would close three of its 13 department stores, in Chicago, Seattle and Las Vegas.

It will also close five smaller stores and seven warehouses as it battles to stave off administration. 

Barneys said it has struggled amid “excessively high” rents and a shift to online shopping in the USA. 

Klarna becomes most valuable fintech company in Europe

Klarna has become the most valuable private financial technology company in Europe – and the eighth most valuable in the world –after securing a $460m cash injection. 

The Swedish firm, which has struck “buy now, pay later” online partnerships with Asos, Ikea and Topshop, is now valued at $5.5bn following its latest round of funding. 

It was led by Dragoneer Investment Group, an American private equity firm that has previously backed Airbnb and Etsy.

Klarna was launched by three friends in 2005 as a rival to Paypal and now employs 2,500 staff. Around 130,000 retailers worldwide have signed up to its service.