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  • Faust
    kitsch killer
    • Sep 2006
    • 37852

    Barneys up for sale - again.



    Jones Group is seeking to unload Barneys after buying it for $400 mil in 04. Price tag rumors vary from $800 million to $1billion by some Middle Eastern oil magnate. I say we chip in and buy it ourselves. Than we could just walk into any Barneys and take whatever we want.





    Stymied by an inert stock price, Jones Apparel CEO Peter Boneparth is
    reported to be considering the sale of luxury department store chain
    Barneys New York, the company's best-performing asset. Barney's
    is not yet on the market and Jones has declined to comment in advance
    of earnings, which will be reported Wednesday. The 2004 purchase of
    Barneys for $400 million was questioned by analysts as inconsistent
    with Jones's moderate portfolio, which includes Nine West and Gloria
    Vanderbilt. Barneys has thrived, however, vindicating Boneparth's
    advocacy of the high-end purchase. If Jones sells Barneys, it can use
    the proceeds to buy back stock, invest in brands or buy new ones. A
    sale could also, however, make Jones even more vulnerable to weakness
    in the moderate apparel sector. It would come at a difficult time for
    the company: Boneparth just fired Heather Pech, the head of the retail
    division; CFO Thimios Sotos resigned last month; and Boneparth himself
    has failed to reach a contract extension agreement with the company.
    Boneparth attempted last year to sell the whole company to a private
    equity firm, a move that ended ignominiously five months later when the
    auction was canceled due to insufficient bids.

    Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

    StyleZeitgeist Magazine
  • Faust
    kitsch killer
    • Sep 2006
    • 37852

    #2
    Re: Barneys up for sale - again.



    More news, from WWD

    Bidding for Barneys: 2 Mideast Equity Firms Said Driving Up the Price




    Monday, June 04, 2007







    By Vicki M. Young






    NEW YORK ? The bidding war for Barneys New York could come down to who blinks first.

    Two
    Middle Eastern investment entities are said to be in keen competition
    to buy the designer retailer ? one, the Qatar Investment Authority, and
    the other, Istithmar from Dubai. And while no deal is certain, the
    winner would end up paying a steep price: Financial and industry
    sources said the amount discussed is higher than the $1 billion to $1.2
    billion that Barneys' owner Jones Apparel Group is said to be seeking.
    Several believe the bidding could go as high as $1.4 billion, a hefty
    sum for a chain that, while upscale, only has 34 stores.


    Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

    StyleZeitgeist Magazine

    Comment

    • Faust
      kitsch killer
      • Sep 2006
      • 37852

      #3
      Re: Barneys up for sale - again.



      More news. You gotta love clueless business reporters. All of a sudden Helmut Lang is "a top designer."


      Barneys Could Be Sold to Dubai Firm











      The Jones Apparel Group is close to an agreement to sell Barneys New York,
      the fashionable clothing retailer, for about $825 million to the
      investment arm of the Dubai government, people involved in the talks
      said yesterday.




      Barneys, whose flagship store, adorned with bright red awnings, is a
      Madison Avenue landmark, has become a beacon of style and a trophy for
      suitors. The proposed deal with Istithmar, the investment arm of Dubai,
      is in the final stages and could come early next week, these people
      said. Still, these people cautioned that the talks could collapse.




      Jones Apparel, a clothing conglomerate that owns Anne Klein, Jones
      New York and Nine West, called off an auction of the entire company
      last year but had been quietly shopping Barneys, which carries top
      designers, like Helmut Lang and Marc Jacobs, and lesser-known labels like Lutz & Patmos and Rag & Bone.




      The store has dressed New York?s elite shoppers, visiting diplomats
      and Hollywood celebrities for decades, supplying them with $10,000
      gowns, $5,000 suits and $200 T-shirts.




      A spokesman for Jones Apparel declined to comment. A spokesman for
      Istithmar could not be reached. Shares of Jones Apparel rose 31 cents
      yesterday to $29.20 a share after a report of the talks in The New York
      Post.




      The deal would be a landmark for Istithmar, which has been steadily
      buying prominent properties in New York, including the Mandarin
      Oriental hotel in the Time Warner
      Center, but which has never owned such an upscale retail brand before.
      It also suggests that the courtship of the retail industry by investors
      has not abated. In the last several years, financial firms rather than
      retail rivals have bought nearly a dozen chains, including Lord &
      Taylor, Toys ?R? Us, Neiman Marcus, Michaels Stores and Sports Authority.




      Barneys ? long coveted by financial barons, competitors and private
      equity groups ? has weathered a series of ownership changes. In 1999,
      after it emerged from bankruptcy, Barneys fell under the control of two
      creditors, Whippoorwill Associates and Bay Harbour Management, both
      investment firms. In 2004, Jones Apparel, a mid-priced clothing
      company, surprised Wall Street by buying the luxury chain.




      Ever since, speculation has become rife that the chief executive of
      Jones Apparel, the former investment banker Peter Boneparth, was
      searching for a buyer, hoping to cash in on a red-hot luxury clothing
      market, which has bolstered sales at Barneys, Neiman Marcus and Saks
      Fifth Avenue.




      He appears to have done just that. Jones paid about $400 million,
      and is expected to sell it for more than twice that ? a vindication,
      given that analysts questions the company?s value to Jones.




      Barneys was founded by Barney Pressman in 1923 with money raised
      from the sale of his wife?s engagement ring. After it overexpanded, it
      filed for Chapter 11 in 1996.




      Once the province of the ultra-rich, Barneys has become popularized
      in the last decade by its portrayal in shows like ?Sex and the City,?
      whose main character, Carrie Bradshaw, treated it as a guilty pleasure.




      Still, its Madison Avenue store attracts a who?s-who list of
      celebrities. Its restaurant, Fred?s, is a power-lunch spot for business
      executives and their wealthy spouses (Spotted there on a recent
      weekday: the ?Today? show anchor Matt Lauer and Allen I. Questrom, the
      former chief executive of J. C. Penney).




      Under Jones Apparel?s ownership, Barneys expanded into several
      cities, opening flagship stores in Boston and Dallas and its smaller,
      less expensive Co-Op formats in Houston; Troy, Mich.; Washington; and
      White Plains. Sales at Barneys stores open at least a year, a widely
      used measure in retailing, rose 10 percent, well above the industry
      average.



      Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

      StyleZeitgeist Magazine

      Comment

      • Faust
        kitsch killer
        • Sep 2006
        • 37852

        #4
        Re: Barneys up for sale - again.



        SOLD


        Barneys Is Sold for $825 Million











        The clothing retailer Barneys New York,
        a temple to fashion that introduced Americans to Armani and $300
        T-shirts, was sold today to the investment arm of the Dubai government
        for $825 million.




        The deal for Barneys, whose founder pawned his wife?s engagement
        ring to start it 84 years ago, represents a trophy for the Dubai
        government, which has been on a buying spree in the United States,
        purchasing a raft of high-profile businesses and real estate, like
        stakes in the retailer Loehmann?s Holding and the investment bank
        Perella Weinberg Partners.




        Barneys was sold by Jones Apparel, the struggling mid-market
        clothing company behind brands like Nine West and Anne Klein, which
        wanted to cash in on a red-hot luxury clothing market. Jones apparel,
        which bought Barneys in 2004 for $400 million, more than doubled its
        money. The agreement allows Jones to consider other offers, both for
        Barneys alone or the company as a whole, according to a statement from
        the company. Jones would have to pay a breakup fee of at least $20.6
        million if it went with another suitor.




        Barneys, a singularly trendy store, never fit neatly into Jones
        Apparel?s stable of mass-market businesses. Its three flagship stores ?
        in Manhattan, Chicago and Beverly Hills ? dress celebrities, executives
        and the credit-card debt-carrying masses in $10,000 tailored suits and
        $400 shredded jeans.




        Unlike Saks Fifth Avenue or Neiman Marcus, Barneys never became a
        household name or a mega-business. Despite cameos in ?Sex in the City?
        and Vogue, it remained exclusive ? its reach largely confined to the
        two coasts and a crowd of the ultra-fashionable.




        Even so, Barneys, founded in 1923 as an off-price men?s suit store,
        has become a prized asset in fashion, renowned ? and at times parodied
        ? for sparse displays, obscure designers and aloof sales clerks.




        Reviewing the store in The Times last year, Alex Kucynski wrote that
        ?To its New York department store brethren, Barneys is the cool kid in
        the class, the one with the magically floppy head of hair, while
        Bloomingdale?s is the head cheerleader and Lord & Taylor, the
        substitute teacher.?




        Despite its glossy reputation, Barneys? roots are rather humble.
        Besides selling his wife?s ring to pay for his first store on 17th
        Street, the founder, Barney Pressman, bolstered his inventory with the
        suit collections of deceased Manhattan doyennes, which he found by
        reading the obituaries.




        The modern Barneys took shape under the control of his son, Fred,
        who discovered little-known designers in London and Milan and began to
        arrange clothes in the store with an eye toward the jet-set crowd.




        But the retailer ran into trouble in the 1980s, when Fred Pressman?s
        sons, Bob and Gene, began opening Barneys big anchor stores around the
        country under a partnership with the Isetan Company of Japan.




        Excesses became common. When Barneys opened its best-known flagship
        store on Madison Avenue in 1993, it decorated an entire department with
        goatskin and installed Carrara marble tiles on the main floor.




        Half of the larger stores failed and a dispute between Barneys and
        Isetan erupted over the ownership of the new outlets. In 1996, Barneys
        filed for bankruptcy protection and control of the family company fell
        to two creditors, Whippoorwill Associates and Bay Harbour Management.




        Since emerging from bankruptcy, Barneys has been led by a succession
        of merchant kings, like Allen L. Questrom, the former chief executive
        of Macy?s and J.C. Penney, and Howard Socol, the former head of J. Crew and Burdines.




        Under Jones Apparel?s ownership starting in 2004, Barneys once again
        expanded into several cities, opening its big, anchor stores in Boston
        and Dallas and its smaller, less expensive Co-Op formats in Houston;
        Troy, Mich.; Washington; and White Plains.




        But this growth did not come at the expense of the bottom line.
        Sales at Barneys stores open at least a year, a widely used measure in
        retailing, rose 10 percent in 2006, well above the industry average.




        The board of Jones Apparel originally considered selling the entire
        company but pulled back when investors balked at the high asking price.
        With the sales of Barneys ? arguably the most coveted part of Jone?s
        business ? it may be harder for the board to find a future buyer, said
        Andrew Jassin, managing director, Jassin-O?Rourke Group, a fashion
        consulting firm, and a former executive at Jones Apparel.




        Still, he said, the price the Dubai government paid for Barneys is ? a great gift to the shareholders of Jones Apparel.?



        Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

        StyleZeitgeist Magazine

        Comment

        • Faust
          kitsch killer
          • Sep 2006
          • 37852

          #5
          Re: Barneys up for sale - again.

          Woah - Uniqlo makes a $900m bid!!!



          Rival $900 Million Bid for Barneys

          Tokyo-based
          specialty retailer Fast Retailing Co. on Thursday made an unsolicited
          $900 million bid for Barneys New York to Jones Group, trumping a rival
          $825 million offer from Dubai-based equity fund Istithmar.

          The bid represents a 9 percent premium over Istithmar's,
          Fast Retailing said in a statement that it "had previously communicated
          its interest in acquiring Barneys to Jones last fall and is submitting
          its proposal under the provisions of the Jones agreement with
          Istithmar, which allows Jones to consider superior proposals for
          Barneys if received prior to July 22, 2007."


          Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

          StyleZeitgeist Magazine

          Comment

          • skot4mc
            Member
            • Oct 2006
            • 74

            #6
            Re: Barneys up for sale - again.



            A little more info.


            Fast Retailing puts in $900m rival bid for Barneys

            WGSN 06.07.07





            Japan's Fast Retailing Co has made a $900m cash offer for Jones Apparel Group Inc's Barneys New York unit, competing with an earlier offer from Dubai-based investment group Istithmar.


            The Istithmar deal was agreed by Jones on June 22 for $825m, and was expected to close during Q3. While it has not been terminated and remains in full force and effect, Jones has said it will provide information and start talks with Fast Retailing.


            If Jones decides to terminate the Istithmar deal, it will be required to pay a $20.6m fee, rising to $22.7m after July 22.


            Fast Retailing, who operates casual clothing company Uniqlo, said it first indicated its interest in acquiring upmarket department store Barneys to Jones last year, and that doing so would add to its geographic and market diversification.


            Istithmar confirmed on Thursday (July 5) it was committed to its $825m offer for Barneys New York. "We believe that our definitive agreement to acquire Barneys? reflects a full and fair valuation for the company," it said in a statement.


            "We remain committed to closing this transaction and continue to be enthusiastic about working in partnership with the strong management team of Barneys to grow this unique asset further and create an even brighter future for the company."

            Comment

            • zamb
              Senior Member
              • Nov 2006
              • 5834

              #7
              Re: Barneys up for sale - again.

              [quote user="Faust"]

              Woah - Uniqlo makes a $900m bid!!!



              Rival $900 Million Bid for Barneys

              Tokyo-based specialty retailer Fast Retailing Co. on Thursday made an unsolicited $900 million bid for Barneys New York to Jones Group, trumping a rival $825 million offer from Dubai-based equity fund Istithmar.

              The bid represents a 9 percent premium over Istithmar's, Fast Retailing said in a statement that it "had previously communicated its interest in acquiring Barneys to Jones last fall and is submitting its proposal under the provisions of the Jones agreement with Istithmar, which allows Jones to consider superior proposals for Barneys if received prior to July 22, 2007."




              [/quote]





              Faust,




              I know you are more knowledgeable ( by means of shopping experience) about barneys than i am....




              What changes dou you anticipate or would like to see (for better or worse) if the owners of uniqlo should become the new owners of Barneys.........

              “You know,” he says, with a resilient smile, “it is a hard world for poets.”
              .................................................. .......................


              Zam Barrett Spring 2017 Now in stock

              Comment

              • Faust
                kitsch killer
                • Sep 2006
                • 37852

                #8
                Re: Barneys up for sale - again.

                Nothing - I like it just the way it is :-). All I want them to do is not rock the boat that is sailing smoothly. Well, maybe get rid of the Gucci section :-)
                Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

                StyleZeitgeist Magazine

                Comment

                • drexl
                  Senior Member
                  • Sep 2006
                  • 798

                  #9
                  Re: Barneys up for sale - again.



                  I wonder if, should there be a bidding war (pushing the price past $1B), the new owners would put pressure on Barneys to sell more commercial dreck. It's kinda worrysome to me, especially knowing private equity's tendency to try and turn the business around as fast as possible in order to unload it again on the market.



                  What do you think Faust, knowing you worked on Wall St. (I believe?), about the PE buyout?

                  Comment

                  • Faust
                    kitsch killer
                    • Sep 2006
                    • 37852

                    #10
                    Re: Barneys up for sale - again.

                    [quote user="drexl"]

                    I wonder if, should there be a bidding war (pushing the price past $1B), the new owners would put pressure on Barneys to sell more commercial dreck. It's kinda worrysome to me, especially knowing private equity's tendency to try and turn the business around as fast as possible in order to unload it again on the market.



                    What do you think Faust, knowing you worked on Wall St. (I believe?), about the PE buyout?



                    [/quote]



                    LOL at "dreck." It's a good question, and although I still work on Wall St. (hopefully for not much longer), it's hard to say without looking at their financial statements. To be honest, I am much more concerned with Fast Retailing counter-offer. I don't think Dubai government would give a shit about how much money Barneys makes - they bought it for prestige, so I doubt they'd rock the boat (and I'm sure they'd build a Barneys in Dubai a size of a Disney Land). FR on the other hand strikes me as a shark that you describe, and since either one of them must be overpaying (there is no way in hell a company can grow twice its size in three years, unless it's Google2), FR would be most likely to push for quicker Return On Investment. I hope Isthimar does not back off, even though they would be getting $20mil on the spot for nothing (see guys, I told you we should've bid first, now we'd have $20mil to walk away with).

                    Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

                    StyleZeitgeist Magazine

                    Comment

                    • Faust
                      kitsch killer
                      • Sep 2006
                      • 37852

                      #11
                      Re: Barneys up for sale - again.

                      UNIQLO is now officially offering $900 mil in cash for Barneys. Damn!
                      Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

                      StyleZeitgeist Magazine

                      Comment

                      • Casius
                        Senior Member
                        • Dec 2006
                        • 4772

                        #12
                        Re: Barneys up for sale - again.

                        Wow, serious business that's for sure. I wonder if there is going to be another offer thrown out.
                        "because the young are whores. dealers come to carol to get the rock"

                        Comment

                        • Faust
                          kitsch killer
                          • Sep 2006
                          • 37852

                          #13
                          Re: Barneys up for sale - again.



                          [quote user="Casius"]Wow, serious business that's for sure. I wonder if there is going to be another offer thrown out.[/quote]



                          Maybe

                          Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

                          StyleZeitgeist Magazine

                          Comment

                          • Casius
                            Senior Member
                            • Dec 2006
                            • 4772

                            #14
                            Re: Barneys up for sale - again.

                            So it sold! 942mil was it, to Istithmar. Wow.
                            "because the young are whores. dealers come to carol to get the rock"

                            Comment

                            • Faust
                              kitsch killer
                              • Sep 2006
                              • 37852

                              #15
                              Re: Barneys up for sale - again.

                              Yea, it's crazy! $500mil profit in a couple of years - pretty handsome.
                              Fashion is a form of ugliness so intolerable that we have to alter it every six months - Oscar Wilde

                              StyleZeitgeist Magazine

                              Comment

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