Closeout Alert:

Lot Less Come To Fulton Street

Racy Windows:

Another Day In The Greased-Up
World Of Calvin Klein

Déja-Vu All Over Again:

Barneys In Play Once More?

Barneysexterior-1
Barneys New York's conspicuous state of limbo is the retail industry's Brangelina -the perennial topic that never gets old. Amidst denials and official statements (or lack thereof), nobody knows exactly what's going on or whom to believe.
Now The Wall Street Journal has weighed in with the development that Billionaire Ron Burkle (his first name is Billionaire, right?) is angling to take control of the chain in a deal that would restructure the substantial debt the store was saddled with when it was purchased by its current owner, Dubai based Istithmar World Capital. Frankly, how this works, we're not exactly sure, and aside from Burkle's stated interest, the Journal reports that nobody else involved, including the hedge fund that controls Barneys' debt, is in any rush make any changes.
So why can't anyone stop talking about Barneys' latest in a long string of predicaments? Nobody has forgotten that Istithmar had to pour $20 million into the store last year to keep deliveries coming and bills paid. David Jackson resigned as CEO of Istithmar earlier this year, paving the way for a new leader who may or may not be patient enough to wait around for the economic climate to improve enough to push the store back to profitability. Additionally, Barneys itself has been without a CEO for about a year and a half, but seems to be chugging along with remarkable consistency thanks to longtime key management like Judy Collinson, Julie Gilhart and Simon Doonan, among others. Like many luxury retailers, the store has reported good results from the recent Holiday season, and is "cautiously optimistic" for the immediate future. In spite of turmoil behind the scenes, the store still maintains a high level of prestige.
But how long can this go on for? At some point, Barneys will need a permanent CEO, and, if it is to survive, it will also have to have an owner who is interested in owning a store, not just a property that can be renovated, rehabilitated and repositioned into financial health so it can be sold at a profit. And who will that be?
Burkle's Yucaipa Cos. is yet another investment firm, so even if it gains control of the store, it would likely, at some point down the road, be looking to unload it again or spin it off somehow once it has gotten what it can out of it. The real question is: Will anyone ever  buy Barneys just because they want to own and run a fantastic luxury store?
Burkle Angles for Controlling Stake in Barneys (Wall Street Journal)

Comments

Hey Shophound
The weather looks delightful this time of year in front of Barneys...and so sunny.

The comments to this entry are closed.