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Dubai loses control of luxury retailer Barneys - ASHARQ AL-AWSAT English Archive
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DUBAI, United Arab Emirates (AP) — Dubai’s state-run investment firm Istithmar World has lost control of upscale retailer Barneys New York.

Barneys says it has reached a deal with Istithmar and its largest lender Perry Capital to significantly shrink the retailer’s $590 million debt load in exchange for Perry acquiring a controlling stake. Billionaire Ron Burkle’s Yucaipa Companies will also own part of the company.

Barneys says it will now hold just $50 million in long-term debt. It announced the change in ownership in a statement issued Monday afternoon in New York.

Istithmar bought the luxury chain in 2007 from Jones Apparel Group Inc. for $942 million.

Istithmar is part of the struggling state conglomerate Dubai World, which was at the heart of the emirate’s financial meltdown in 2009.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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