We went to Barneys' Manhattan flagship to see why it's the latest department store to reportedly consider bankruptcy

• Barneys, the luxury department store, is reportedly considering restructuring options including bankruptcy.
• Though it denied any plans to downsize its Manhattan store in March, high rent prices and a shifting customer base are partly to blame for the store's recent struggles, sources told Reuters.
• We visited Barneys' Manhattan flagship store to see why it's looking to restructure.
• Visit Business Insider's homepage for more stories.

Bankruptcy isn't just for shoe stores and fast-fashion retailers - these day it's a luxury retail problem, too.

Barneys - the high-end department store known for its designer offerings - is reportedly considering bankruptcy among its options to restructure its business and avoid joining a growing graveyard of retail stores.

The New York-based retailer serves a clientele with an eye for luxury. It has just 28 stores located in hubs like Boston and Beverly Hills.

Read more: We visited a Hollister flagship store that's closing soon and saw why the brand needed a new strategy

Barneys' Madison Avenue store accounts for about one-third of the company's revenue, The New York Times reported on Thursday. But with talks of the annual rent on the 275,000-square-foot store increasing from $16 million to $30 million, the store could become unsustainable.

"At Barneys New York, our customers remain our top priority and we are committed to providing them the excellent services, products, and experiences they have come to expect. We continue to work closely with all of our business partners to achieve the goals we've set together and maximize value. To that end, our Board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business," a Barneys spokesperson said in a statement to Business Insider.

"At the same time, we continue to evolve our strategy and business model for the benefit of all of our stakeholders through our forward-thinking and uniquely modern approach, as demonstrated by our announced store openings at American Dream in New Jersey and at Bal Harbour Shops in Miami Beach, our new store in Las Vegas, Freds at Barneys New York coming to Copley Place in Boston, the launch of our luxury cannabis lifestyle and wellness concept shop and various pop-up and vendor installation projects."

We visited the Barneys store on Madison Avenue to see why it might be the latest retailer to declare bankruptcy. We found that Barneys wasted valuable space in its showrooms with elaborate sitting areas and almost-empty racks.

Here's what we saw: