Private Equity Takes Barneys for $825M

NEW YORK CITY-Jones Apparel Group is selling Barneys New York, its high-end department-store chain, to Dubai-based private-equity firm Istithmar for $825 million. Jones is selling the 34-unit chain to “reduce the level of required capital expenditures (so) we will have greater financial flexibility in the execution of our business strategy,” according to a company statement.

The Barneys portfolio is made up of flagship stores here, Beverly Hills, Chicago, Boston and Dallas; two regional full-price stores; 14 CO-OP Barneys New York stores; and 13 outlet stores. In the fall the chain is scheduled to open its fifth flagship store, in San Francisco.

Jones acquired Barneys in 2004 for $400 million. At that time, the chain operated 21 stores across the country.