Friday, June 22, 2007

Breaking: Barney's SOLD!

Too bad you didn't have $825 mil in cash lying around - you could've been the proud new mama of Barneys New York. The retailer was sold for that amount to an affiliate of Istithmar, a Dubai investment private equity firm today, according to Barneys' current parent company Jones Apparel Group.

Peter Boneparth, Jones president and CEO, said in a statement, “We are very pleased to enter into this transaction, which realizes significant value for our investment in Barneys and provides us with the opportunity to use the net proceeds to enhance shareholder value. Furthermore, going forward, because the sale will reduce the level of required capital expenditures we will have greater financial flexibility in the execution of our business strategy.”