New York, NY (CNS) – Barney’s New York, the famous luxury chain, may be in danger of being sold. But in today’s economy, it doesn’t come as a surprise.
Bloomberg News reported rumors that the owner of Barney’s New York, Dubai’s Istithmar World PJSC, may sell the U.S. luxury chain. This news comes less than two years after buying it.
The fund has been struggling with losses and the luxury market slowdown. According to Saudi bank Samba Financial Group and Bloomberg, Istithmar is one of seven Gulf funds that lost a cumulative 15 percent last year.
As of last year, it managed more than $10 billion. The fund also owns 20 percent of Canadian circus troupe Cirque du Soleil and a majority of Gulf Stream Asset Management LLC.
The asking price for Barney’s New York is $942.3 million, which is exactly what Istithmar paid for the company, despite the recession.