Barneys New York Inc. is talking with another lender about financing the chain’s operations if it decides to file for bankruptcy, a move that could come as soon as next week, according to people with knowledge of the discussions.
Advisers to the high-fashion retailer held talks with the specialty finance firm Great American Capital Partners, in addition to existing lenders at TPG Sixth Street Partners and Wells Fargo & Co., the people said.
The company is seeking a debtor-in-possession loan that would allow it to stay open while it works out a turnaround plan in court under Chapter 11 protection, according to the people, who asked not to be named sharing private information.
Bankruptcy could still be averted and Barneys is continuing to consider alternatives, the people said. Advisers are determining how many stores might need to close as part of a turnaround plan, the people said.
“The Barneys New York board and management continue to work constructively and collaboratively with a number of parties and are committed to reaching a mutually agreeable resolution to strengthen our business,” according to a company statement.
Representatives for TPG Sixth Street Partners, the $30 billion credit arm of the private equity firm TPG Capital, and Great American Capital Partners declined to comment.
Wells Fargo also declined to comment. The retailer previously talked with lenders including Wells Fargo about arranging a bankruptcy loan.
Barneys New York operates flagship stores in New York City on Madison Avenue and in Chelsea, as well as Beverly Hills, Chicago, Seattle, Boston, San Francisco, and Las Vegas. The chain has struggled to turn business around, hobbled by steeply rising rents as cash runs short and consumers defect to other outlets.
More must-read stories from Fortune:
—Sweat marketing: Lululemon’s tie-in with Barry’s Bootcamp
—Shopping and noshing in Chicago—a retail trend
—Online bra destination ThirdLove opens concept store in New York
—Rebooting Converse: Should the brand play hard to get?
—Listen to our audio briefing, Fortune 500 Daily
Follow Fortune on Flipboard to stay up-to-date on the latest news and analysis.
