Retail Detail. Bid for Barneys is Official. Second City Style Fashion Blog

August 1, 2007 • Shopping


It’s no longer speculative, on Tuesday Fast Retailing Co. Ltd. made a formal offer to acquire Barneys
New York
from Jones Apparel Group for $900 million in cash, according to WWD.

The offer by Japan-based
Fast Retailing (known for its Uniqlo brand) is conditional on the execution of a
mutually acceptable purchase agreement. Fast Retailing
said it is "committed" to supporting the continued growth of Barneys as
a leading luxury department store brand. Phew.

There could be a glitch however, on June
22, Jones entered into a definitive agreement to sell Barneys to an
affiliate of Istithmar, a Dubai-based private equity and alternative
investment house, for $825 million in cash, subject to certain purchase
price adjustments. That agreement remains in full force and effect.

Jones and Fast
Retailing now have until Aug. 11 to negotiate a binding agreement. If
one does not materialize, the agreement Jones has with Istithmar
proceeds to closing. If an agreement between Jones and Fast Retailing
is successfully reached, then Istithmar has to consider possibly matching the terms of the Fast Retailing offer, a
source said.

Should Jones chose to end its agreement with Istithmar, it
would be required to pay the Istithmar affiliate a termination fee of
$22.7 million.

Now it gets interesting. Stay tuned!

Source: WWD

See the Top Ten Summer 2016 Trends for Women Over 40

Leave a Reply