Barneys New York Bought by Jones Apparel Group
New York City, Jones Apparel Group, Inc. will spend roughly $400 million to purchase Barneys New York, which operates stores in 21 locations, including New York City, Beverly Hills and Chicago. The deal is comprised of roughly $294 million in stock and $106 million in debt. Both companies’ boards of directors have approved the deal.
Howard Socol will continue as chairman, chief executive and president of Barneys, which will operate as a stand-alone company. For the 12 months ended July 31, the luxury apparel and accessories chain reported sales of $444.2 million and operating income of $32.8 million. The deal also will give Jones entrance into the luxury market and increase its retail holdings. According to Peter Boneparth, chief executive and president of Jones, retail will comprise 24% of its projected 2005 net revenue, up from 17%. In addition, sales distributed through the specialty retail channel will comprise 28%, up from 21%.