The clock is ticking for luxury retailer Barneys.

The upscale department store, known for its 10-story flagship store on Madison Avenue, was told by its lenders Friday that it has until Oct. 3 to find a buyer and avoid liquidation.

The deadline was set at a bankruptcy court hearing after Barneys revealed that it has received “letters of intent” by potential buyers, which would help it stave off liquidation.

But the revelation failed to impress lenders, who have forked over $218 million to keep the company running after it filed for bankruptcy protection last month, sources said.

The deadline to submit formal bids for Barneys is Oct. 24, but its lenders, who include B. Riley Financial and Brigade Capital Management, don’t plan to wait around for a knight in shining armor to surface, these people added.

“The DIP lenders don’t want to wait until the last second because every day this drags on, their collateral [Barneys inventory] goes down,” said a source close to the proceedings.

“The lender has Barneys on a short lease to keep the pressure on for the company to get a definitive offer for all the assets as soon as possible,” added David Wander of Davidoff Hutcher & Citron, who is representing a vendor in the bankruptcy case.

There are at least two interested buyers who want to acquire the upscale retailer in its entirety, while others would be interested in its parts, according to Bloomberg. Licensing firm Authentic Brands Group, which owns Juicy Couture, is reportedly first in line to acquire Barneys’ intellectual property should the company be liquidated.

The nearly century-old retailer, now run by Daniella Vitale, fell victim to increasing competition from online retailers and rising rents at its Madison Avenue location.