Barneys sees no change in ownership

Upscale store chain Barneys New York does not expect its parent Istithmar to explore a sale or any other transaction involving the company's ownership structure, Barneys executives said.

Istithmar, a unit of Dubai World, bought Barneys for $942 million (Dh3.45 billion) from Jones Apparel Group in 2007. It provided some additional funding to Barneys in April 2009 as the luxury goods industry languished in the wake of the global financial crisis, allowing it to pay for its shipments for the rest of the year.

"We have no indication of there being a transaction in the short-term," Barneys' Chief Financial Officer Vince Phelan said. "We have no reason to believe there's any change in the ownership structure. We think Barneys New York is very important to their ownership structure."

He said the company has no current need for capital and has no current problems with its vendors. "We've had no issues. We're paying people," he said.

Overall, Barneys expects 2010 to be a strong year, with a pickup in demand across all categories, said Michael Celestino, Barneys director of stores.

The online business is up 50 per cent this year, said Phelan. The retailer said it will name a new chief executive, with both internal and external candidates being considered.

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