Article: Barneys pins slow payments on procedures.

NEW YORK -- Is it a case of bad cash flow, and managment or simply bad manners?

Even though first-quarter results for Barneys Inc. indicate that the upscale retailer is financially sound, the company is haunted by horror stories of slow payments, and the factoring community is getting nervous.

Barneys says it is guilty of bad management and is seeking to correct the situation. Others accuse it of arrogance in the marketplace. But cash flow does not seem to be a problem.

"Our current reported vendor payment issues are unfortunate and genuinely reflect poor communication on our part," the company told WWD (see related story, page 4).

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