Barneys under Dubai ownership?

Luxury fashion retailer Barneys New York is close to finding a new owner. According to various media reports, owner Jones Apparel Group is close to an agreement to sell the retailer to Isithmar, the investment arm of the Dubai government for about $825 million. This is more than double the amount Jones Apparel Group paid for Barneys in 2004.

Although neither party has commented on the potential sale, it is believed that the acquisition of Barneys would be a major coup for Isthithmar. The investment vehicle has purchased a number of prominent New York properties in recent times, notably the Mandarin Oriental Hotel in the Time Warner Centre. Barneys' would be its first major upscale retail acquisition.

Jones Apparel, which owns retailers Anne Klein, Jones New York and Nine West, surprised the world when it acquired the exclusive retailer three years ago. Barneys has long been an institution in the fashion world and among fashionable clients, selling such coveted brands as Marc Jacobs and Jil Sander at sky-high prices. The connection with a mid-market retail group like Jones Apparel seemed incongruous. Yet, if the group manages to off-load the retailer for more than double its purchase price, Jones Apparel will have the last laugh.

www.jonesapparelgroup.com