Dubai Firm Wins Barneys New York Stores

NEW YORK CITY-Dubai-based firm Istithmar has won the bidding war for the Barneys New York chain after getting temporarily beat out by Japanese company Fast Retailing. Istithmar is paying Jones Apparel Group $942.3 million in cash for Barneys in a deal the parties expect to close in the third quarter.

Fast Retailing had until yesterday afternoon to make an offer higher than private-equity firm Istithmar. It had put in a $950-million bid for the chain, but Jones would have had to pay a $22.7-million cancellation fee to Istithmar, which made an original, $825-million offer for Barneys in June.

This final deal gives the Dubai outfit 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. The chain is scheduled to open a fifth flagship, in San Francisco, in the fall.