The deal for Barneys represents a trophy for Istithmar, the arm of the Dubai government, the Times reports. It 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 Holdings and the investment bank Perella Weinberg Partners.
Jones Apparel, which bought Barneys in 2004 for $400 million, more than doubled its money on the sale, the Times reports.
Under Jones Apparel’s ownership, Barneys expanded into several cities, opening big anchor stores in Boston and Dallas and smaller less expensive co-op formats, the Times reports. Sales at Barneys stores open at least a year rose 10 percent in 2006.
Under the terms of the sale, Jones Apparel is permitted to entertain unsolicited proposals from third parties to acquire Barneys for the next month and can entertain offers for all of Jones Apparel for almost two months, the Times reports. The provision is a rare opportunity for a possible higher bid from a rival.
The board of Jones Apparel originally considered selling the entire company but pulled back when investors balked at the high asking price, the Times reports.