Barneys New York, a high-end retailer, is exploring different options to cope with high rent at its Manhattan flagship store. In January, monthly rent at its Manhattan location went from $16 million to $30 million, which has hurt Barneys' finances.

Some close to the company have said that they have enlisted law firm Kirkland & Ellis to assist with preparation for the possible bankruptcy filing, although it is uncertain whether the retailer will take that course of action, according to Reuters.

The company said in a statement that it is currently "evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth of our business."

Barneys has more than 10 stores across the country, in states such as Florida, California and Illinois. There are also 12 stores in Japan due to a franchising agreement. The company also recently got into the cannabis industry.

E-commerce giants such as Amazon have put pressure on high-end retailers such as Barneys, as consumers are increasingly prefer to shop on their phones instead of going to a physical store. Other big-name retailers, such as Lord & Taylor and Ralph Lauren have shut down their stores in Manhattan within the last few years.

The company has encountered financial struggles before. In 1996, the retailer declared chapter 11 bankruptcy, which forced the company to close down some of its locations.

In 2012, the company became financially backed by Perry Capital, which reduced the company's debt load. In 2016, Perry Capital shut down.

Barneys New York was founded in 1923 where the brand built its image on luxury menswear. It was the first American department store to have the full line of the Georgio Armani brand.