Istithmar World is working to improve Barneys New York's financial situation and is committed to the retailer despite tough market conditions, the Dubai-based group has said.

Barneys is seeking a debt restructuring or bankruptcy filing, which may lead to owner Istithmar losing control over the retailer, media reports had said.

'Istithmar remains fully committed to Barneys and supportive of its management team,' the Dubai-based firm said.

'These are challenging times for retailers, and the company continues to work aggressively to improve its financial position.'

Istithmar is one of the flagship companies of state-owned Dubai World, whose real estate unit Nakheel is struggling to refinance a $3.52 billion Islamic bond maturing in December.

Istithmar in August hired an advisory firm to help it mull options to shore up the luxury chain's financial position.-Reuters