Barneys Employees Told Paychecks Stalled Due To Ransom Hacker

A cyberattack is being blamed for holding up paychecks from the remaining staff at the beleaguered Barneys New York.

A source told Page Six on Wednesday (Jan. 8), “No one got paid last week. 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.”

According to the source, employees were told that their paychecks were “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.”

The store claimed it “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.”

The hack was confirmed by another source, who indicated that everyone would be paid this week. They said, “We funded [payroll] this morning, and employees were advised they would be paid on the 9th. Unfortunately, there was an issue with a cyberattack, but we are working through it to get everything back up and moving. But, getting employees paid was the most important.”

The bankrupt retailer was acquired in October by Authentic Brands for $271.4 million.

Business Insider reported that the source of the hack is still unknown. Authentic Brands said it is “not in the position to comment,” adding that “ABG is the owner of the intellectual property of Barneys, and did not purchase the inventory or store leases in the acquisition.”

Barneys New York dates back to the 1920s when Barney Pressman opened the doors to a clothing shop on Seventh Avenue and 17th Street. Fred Pressman, Barney’s son, took over the store, and guided its move from a discount store to a luxury retailer in the 1970s. The retailer then made its mark on luxury fashion in New York, introducing designers like Giorgio Armani while creating its foothold in menswear.