Another bump in the road for Barneys. The once-high-flying chain stiffed staffers last week due to a corporate hack, and some remaining employees are walking out, Page Six has learned.
“No one got paid last week,” an insider told us. “We were told a group of cyber hackers took over one of our subsequent systems, the system we use to get paid. They didn’t initially tell us. They said the systems were hacked on Thursday — when we noticed our checks weren’t uploaded on the platforms.”
The source claimed the payments are “being held at ransom, and the current owners don’t want to pay the ransom, so we’re not getting paid. No one knows when we’ll get paid.” They added that the store “didn’t have any information other than one of those malware groups that hacks into different schools and companies.
“It was the final straw for a lot of employees. All of the stores across the country were affected by it. A lot of people didn’t show up the next day.”
A different insider confirmed the hack, but said employees will be paid this week. “We funded [payroll] this morning and employees were advised they would be paid on the 9th. Unfortunately, there was an issue with a cyber attack, but we are working through it to get everything back up and moving. But, getting employees paid was the most important.”
Managers have been paying it forward by buying lunch for staff, we hear. But “people are upset,” the first source said, adding staffers “don’t know” how long they’ll have jobs. “We could close in mid-February when the liquidation [sale] ends,” they speculated, claiming they were told the NYC and LA flagship stores are “severely understaffed.” “We don’t know, as of right now, if we’re going to get severance pay because of the bankruptcy, and we’re all working with HR to make sure our 401(k)s are still safe.”
Authentic Brands purchased the bankrupt retailer for $271.4 million in October. The Post reported that Barneys doesn’t have enough dough to pay for some merchandise it’s selling, vendors claimed in court papers.
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