Ronald Burkle has become a significant investor in Barneys New York in recent months, with his Yucaipa Cos. buying a chunk of the struggling luxury retailer's debt, people familiar with the matter told the Wall Street Journal.

The billionaire investor reportedly has bought a large part of the company's secured term loan from Citigroup Inc. at about 60 cents on the dollar. Yucaipa also bought a chunk of Barneys' subordinated debt.

The investment could make Burkle a pivotal player in the future of Barneys, a 42-store high-fashion chain whose cachet has attracted a rotating cast of corporate owners. The latest one is Istithmar, a unit of Dubai's state-owned Dubai World, which paid $942.3 million for the company in 2007 at the top of the market.

Barneys took on debts of about $500 million to fund the purchase. Since then, economic woes have crimped Barneys' sales, and it has been without a CEO for the past 18 months. Istithmar now is exploring a possible Barneys restructuring.

• Read the full Wall Street Journal story.