Istithmar said that it has injected an undisclosed amount of new capital into department store chain Barneys New York. The money is expected to ensure that Barneys meets its 2009 schedule of shipments. Istithmar bought Barneys in 2007 for $943.2 million from Jones Apparel Group.
David Jackson, CEO of Istithmar World Capital announced today that “Istithmar World Capital has provided a significant level of additional capital to support Barneys New York. Working closely with management, we believe that this amount allows the company financial flexibility to work with the company’s major vendors and financial intermediaries. The plan enables the company to meet its 2009 schedule of shipments. We will continue to monitor the company’s performance but we are confident that no further injection is needed at this time.”
Barneys New York is a luxury retailer with flagship stores in New York City, Beverly Hills, Chicago, Boston, Dallas, San Francisco and Las Vegas. In addition, the Company operates two regional stores, 18 Barneys New York CO-OP stores, 13 outlet stores, and two semi-annual warehouse sale events. The Company also maintains corporate offices in New York City and an administrative and distribution center in Lyndhurst, New Jersey, and has approximately 2,200 employees.
The Company is a subsidiary of Istithmar, a private equity and alternative investment house headquartered in Dubai, the United Arab Emirates, with offices in Shanghai and New York. Established in 2003, Istithmar is 100% owned by Dubai World which in turn is wholly owned by the Government of Dubai. In the three years since its inception, Istithmar has invested in over 30 companies in three sectors — consumer, industrial and financial services, with assets under management of USD 9 billion.
Istithmar’s ‘I’ Investment Philosophy is based around three core principles–Ideas, Inquiry and Integrity, and is the foundation on which the firm has established a broad portfolio of highly successful investments in the markets from North America and Europe to Asia and the Middle East.