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Friday, June 22, 2007

BARNEYS SOLD FOR $825

NY Times reports that Jones New York sold Barneys for $825 million to Dubai. Not a bad return on investment, considering that they bought it for $400 million two and a half years ago. Hedge-funders beware - there are better places to sink your money in.

NY Times article

The clothing retailer Barneys New York, a temple to fashion that introduced Americans to Armani and $300 T-shirts, was sold today to the investment arm of the Dubai government for $825 million.

The deal for Barneys, whose founder pawned his wife’s engagement ring to start it 84 years ago, represents a trophy for the Dubai government, which has been on a buying spree in the United States, purchasing a raft of high-profile businesses and real estate, like stakes in the retailer Loehmann’s Holding and the investment bank Perella Weinberg Partners.

Barneys was sold by Jones Apparel, the struggling mid-market clothing company behind brands like Nine West and Anne Klein, which wanted to cash in on a red-hot luxury clothing market. Jones apparel, which bought Barneys in 2004 for $400 million, more than doubled its money. The agreement allows Jones to consider other offers, both for Barneys alone or the company as a whole, according to a statement from the company. Jones would have to pay a breakup fee of at least $20.6 million if it went with another suitor.... (continued)

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