In addition, the offer is higher than an $825-million proposal submitted earlier by Dubai-based private-equity firm Istithmar. That company now has until Aug. 8 to submit a more favorable proposal.

The Barneys chain 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. If the Istithmar bid is refused, Jones must pay the firm a $22.7-million cancellation fee.

Jones' other chain footwear and apparel stores, which include Easy Spirit, Jones New York, Nine West and others, fell 8% year over year during the second quarter, which ended July 7. The sales deterioration started during last year's fourth quarter and is due to a "weak retail climate," said Wesley Card, Jones' president and chief executive officer, during a conference call.