A party celebrating Jay Z's fashion collaboration with U.S. retailer Barneys has been cancelled amid the store's racial profiling scandal.

The rapper was urged to pull plans for his curated designer collection following allegations two young black shoppers were detained by cops after making expensive purchases at a New York City branch.

After meeting with bosses at the store to discuss the future of the project, the rapper agreed to move forward with the line on the condition he is involved with an investigation into the racism claims.

However, bosses at the store have now confirmed a pre-launch event slated for Wednesday (20Nov13) has been scrapped.

A spokesperson for Barneys says, "Due to unforeseen circumstances, the event has been cancelled."