US department store Barneys is believed to be considering filing for bankruptcy.
The Guardian has reported the 100-year-old luxury retailer, which has 16 stores in cities such as New York, Chicago, Boston, Seattle and San Francisco, is working with the law firm Kirkland & Ellis to explore solutions to its financial troubles.
While the decision has yet to be finalised, it is thought that filing for chapter 11 bankruptcy protection could alleviate the pressure from expensive leases.
In October 2018, fellow US department store Sears filed for bankruptcy protection, closing 142 of its 700 US stores.
Commenting on the reports, Barneys said in a statement: “At Barneys New York, our customers remain our top priority, and we are committed to providing them the excellent services, products and experiences they have come to expect.”
“We continue to work closely with all of our business partners to achieve the goals we’ve set together and maximise value. To that end, our board and management are actively evaluating opportunities to strengthen our balance sheet, and ensure the sustainable, long-term growth and success of our business.”