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 Vying reports suggest that luxury retailer Barneys New York Inc. may or may not file for bankruptcy. Bloomberg reported that the retailer may file for bankruptcy or undergo a restructuring process resulting in its owner Dubai's Istithmar World Capital losing control of the high-end retailer. Additionally, hedge fund Perry Capital LLC has been approached by department store chain, Holt Renfrew, about a joint offer for control of Barneys. But Istithmar, which paid $942 million in 2007, told Reuters it is "fully committed" to Barneys and is working on restructuring the company and helping it pay off debt. "Istithmar remains fully committed to Barneys and supportive of its management team," the Dubai-based firm said in an e-mailed statement. "These are challenging times for retailers, and the company continues to work aggressively to improve its financial position." Its a good thing that Istithmar has deep pockets, because the odds are stacked against it. The firm gave capital to the chain in April so it could pay for shipments for the remainder of the year. Istithmar itself owes around $60 billion to lenders, and Barneys has $660 million of loans maturing through 2016, according to Bloomberg. The company has also yet to replace its CEO, who retired in May 2008. The growing debt prompted rumors last January that Istithmar was selling Barneys or seeking an equity partner as Moody's Investors Service put Barneys on its list of companies most likely to default on their debts. If Barneys does wind up filing for bankruptcy, it would be its second go-around in Chapter 11. The company emerged from bankruptcy in 1998. - Maria Woehr
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