UPDATE 1-Dubai's Istithmar working on Barneys finances

Dubai's 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 said on Tuesday.

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 in an e-mailed statement. "These are challenging times for retailers, and the company continues to work aggressively to improve its financial position."