Barneys New York filed for Chapter 11 bankruptcy on Tuesday in an attempt to avoid liquidation. In its filing, the company’s restructuring plan includes closing stores as well as securing $75 million to finance the sale of its assets.

Barneys said it will continue to operate only five locations, closing stores located in Chicago, Las Vegas, and Seattle as well as five smaller concept stores, and seven Barneys Warehouse stores. It will continue to operate its Madison Avenue, Downtown NYC, Beverly Hills, San Francisco and Copley Place in Boston, as well as two Barneys Warehouse locations, including Woodbury Common and Livermore.

Through its bankruptcy filing, Barneys has requested that it continue payment of employee wages and benefits as well as the ability to honor customer payments and orders.

The company, like many retailers, has been struggling to find foot traffic in its stores as consumers turn to the internet for purchases. Barneys has also been challenged with increasing rents amid falling sales, reduced cash on hand, and out-of-season merchandise or no available products to sell, CNBC reported. Rent at Barney’s flagship store on Madison Avenue went from about $16 million to $30 million in January, according to the news outlet.

"For more than 90 years, Barneys New York has been an iconic luxury specialty retailer, renowned for its edit, strong point of view, creativity and representation of the world's best designers and brands," said Daniella Vitale, CEO and president.

"Like many in our industry, Barneys New York's financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand. In response to these obstacles, the Barneys New York Board and management team have taken decisive action by entering into a court-supervised process, which will provide the Company the necessary tools to conduct a sale process, review our current leases and optimize our operations.

“While doing that we are receiving new capital to help support the business. Pursuing a sale under the Court's supervision provides the quickest and most efficient means of maximizing value while ensuring we continue serving both new and loyal customers."

This is the second time the retailer has filed for bankruptcy with the first occurring in 1996. The retailer’s roots date back to 1923.

Barneys New York flagship
A view of the exterior of the building as Barneys New York. Barneys has become the first major U.S. retailer to sell marijuana and marijuana products. Nicholas Hunt/Getty Images