NEW YORK (Reuters) – U.S. luxurious department retailer Barneys Contemporary York Inc is exploring a bankruptcy submitting as it struggles with excessive rents and altering shopper tastes, of us conversant in the topic stated on Saturday.

FILE PHOTO: Of us stroll by a Barneys Contemporary York retail retailer in Contemporary York October 24, 2013. REUTERS/Eric Thayer

The shut to 100-365 days-light department retailer, known for its excessive-discontinuance kind designer sequence, is working with law firm Kirkland & Ellis LLP to put together for a seemingly bankruptcy submitting that would possibly perchance presumably well furthermore attain in the coming weeks, one in every of the sources stated.

Barneys has now now not but made a final resolution on whether or now now not to gaze bankruptcy protection, and is weighing different imaginable alternatives for addressing excessive rents which would be straining its enterprise, the sources cautioned. Submitting for bankruptcy would be one possibility to tackle costly leases, the sources stated.

The retailer’s flagship department retailer on Madison Avenue in Contemporary york has weighed on its finances, one in every of the sources stated. The sources requested now now not be identified since the deliberations are confidential.

“At Barneys Contemporary York, our customers remain our high precedence and we’re dedicated to providing them the improbable providers, products, and experiences they’ve attain to search data from,” the corporate stated in an announcement.

“We proceed to work intently with all of our enterprise partners to live the targets we’ve location together and maximize value. To that discontinuance, our board and management are actively evaluating opportunities to give a find to our balance sheet and derive obvious the sustainable, long-term growth and success of our enterprise,” the corporate added.

Would maybe well tranquil it file for bankruptcy, Barneys would be one in every of basically the most excessive-profile victims of the downturn in retail. Sears Holdings Inc, Toys “R” Us Inc and Gymboree Neighborhood Inc safe furthermore filed for bankruptcy in roughly the previous 365 days.

As effectively as to its upscale retailers, Barneys operates Barneys Warehouse retailers, as effectively as Freds eating places. In all, Barneys has 28 places, in accordance with its web situation. Its most prominent places consist of Beverly Hills, California; Chicago; Seattle; Boston; San Francisco; and Las Vegas.

Barneys made its establish in the Nineteen Thirties by inserting girls americans wearing barrels start air beer halls in Contemporary York Metropolis, where they’d hand out matchbooks advertising and marketing and marketing the retailer, in accordance with the retailer’s web situation.

The retailer, now known for exciting apparel made by designers comparable to Burberry Neighborhood Plc, started as a destination for heart-class households. It transitioned to luxurious kind in the 1960s.

Reporting by Jessica DiNapoli and Mike Spector in Contemporary York; modifying by Jonathan Oatis