The sources told Reuters that filing for bankruptcy protection could help alleviate the pressure of expensive leases.
In a statement to CNN Business, the luxury department store, formally called Barneys New York, said it is "actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business." The company did not say whether those options included bankruptcy.
Barney's has several locations in the United States, but its headquarters and flagship store line the area around New York's Fifth Avenue, which for months has been emptied of prominent luxury retailers as they flee high rents and shifting consumer tastes.
Calvin Klein, Ralph Lauren (RL), Lord & Taylor, Henri Bendel, and, reportedly, Versace are leaving the once-coveted shopping destination in Manhattan.
"We continue to evolve our strategy and business model for the benefit of all of our stakeholders through our forward-thinking and uniquely modern approach," the company said in a statement.