Fashion News

BARNEY’S NEW YORK MAY BE SOLD

Barneys New York is owned by Dubai’s state-owned fund Istithmar World PJSC who may opt to sell the retailer less than two years after buying it, as the fund struggles with losses and the luxury sector experiences massive slowing down. Reportedly Istithmar doesn’t want to sell the famed high-end retailer for any less than the $942.3 million it paid for it in 2007 when Barneys was acquired from Jones Apparel Group Inc (who bought the retailer in 2004 for $294.3 million).

The problem that the Dubai investment fund are having as related to Barneys is their lack of successful expansion outside the U.S. after Howard Socol resigned as chief executive in May. Mainly any attempts to partner with Prada SpA in order to expand in the Middle East have not progressed due to the financial crisis. With no signs of an imminent reversal of the massive slowdown in business due to the economic meltdown, the problems seem to only be growing for the cutting-edge landmark retailer.