Barneys New York has received a fresh cash injection as it seeks to fend off the threat of collapse.

The US department store chain, which filed for Chapter 11 bankruptcy yesterday, has been handed an extra $143m (£118m) by investment management firm Brigade Capital and financial services company B. Riley Financial.

It comes on top of the $75m (£61m) it secured from Hilco Global and Gordon Brothers.

Under the Chapter 11 agreement, Barneys has been granted court approval to help meet financial commitments and continue operations, including paying employees, manufacturers and suppliers.

Barneys chief executive Daniella Vitale said the “substantial” cash injection will “better support” the chain while it seeks a buyer.

As in the UK market, US department stores are grappling with rising rents, changing consumer habits and a shift to online shopping.

Barneys blamed the challenging retail backdrop and “excessively high” rents for its collapse when filing for Chapter 11 bankruptcy yesterday.

The business will close seven of its warehouses and eight stores, including branches in Chicago, Las Vegas and Seattle.

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