Japan's Fast Retailing Co. dropped out of the bidding for the specialty retailer Barneys' yesterday, leaving Dubai-based investment fund Istithmar as the new owner. It will pay Jones Apparel Group,
Barneys' parent, $942.3 million in cash when the deal closes in the third quarter.
While many analysts believe Istithmar wants to expand Barneys internationally, David Jackson, CEO
of Istithmar, says that at least for the moment, the real growth is in the U.S. Barneys is about ready to launch its flagship in San Francisco, with a Las Vegas flagship set to open a few months
later.
Istithmar needs to hope that the seemingly insatiable demand for luxury, contemporary and premium denim will roll on. So far, the prognosis is good, according to analysts such
as Dana Telsey of Telsey Advisory Group, who believes luxury brands will continue to grow. Emerging international customers from Eastern Europe, India and China are making a huge impact and make up an
enormous market for spending, Telsey notes.
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