Barneys to receive $50m cash injection?

US: Barneys to receive $50m cash injection - report

By Simon Warburton | 1 February 2010

New York fashion retailer Barneys may receive a cash injection of $50m in exchange for a controlling stake from supermarket operator Ron Burkle's investment company Yucaipa Cos.

According to a Reuters report, Barneys, which is owned by Istithmar World Capital in Dubai, is the subject of a proposal from Burkle.

The supermarket operator has apparently written to the former chief executive of Istithmar World Capital suggesting the tie-up, which would leave the UAE private equity group with a 20% stake in the luxury retailer.

Last year Istithmar provided Barneys with a "significant level of additional capital" following the loss of US consumer confidence.

The company operates flagship stores in New York, Beverly Hills, Chicago, Boston, Dallas, San Francisco and Las Vegas, as well as a range of other retail outlets.

Istithmar bought Barneys for US$942.3m in September 2007.

Spokespeople for the company were not immediately available to comment when contacted by just-style.

Sectors: Finance, Retail

Companies: Barneys, Istithmar