Jones Apparel May Sell Barneys Today -- New York Times

Jones Apparel is on the verge of closing a deal to sell its Barneys New York luxury department store chain to the Dubai government for about $825 million, according to the New York Times. Unnamed sources say a deal could be announced today. The price is $125 million less than the $950 million reported by the New York Post on June 13. Jones' CEO Peter Boneparth bought Barneys in 2004 for $400 million. He has been under pressure from shareholders to boost the company's share price in the face of weak sales; shares are down 15.2% YTD. The deal would be partial vindication for Boneparth. Barneys' 35-odd stores -- including flagships in NYC, Beverly Hills, Boston and Chicago -- sell designer apparel, shoes, accessories and home furnishings. The buyer, private equity firm Istithmar, is owned by the oil-rich Dubai government. The firm has purchased $1.6 billion of 'high-profile' businesses and real estate in the last three years.

Sources: New York Times
Commentary: Jones Apparel on the Verge of Selling Barneys -- NY Post • Jones Apparel Reportedly Considering Sale of Barneys • Jones Apparel: Room to Grow -- Barron's
Stocks/ETFs to watch: Jones Apparel Group Inc. (JNY). Competitors: AnnTaylor Stores Corp. (ANN), Brown Shoe Company Inc. (BWS), Liz Claiborne Inc. (LIZ). ETFs: Retail HOLDRS ETF (RTH)

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