Jones to sell Barneys to Dubai investor

NEW YORK Jones Apparel Group today announced that it will sell its wholly owned subsidiary Barneys New York to an affiliate of Istithmar, a Dubai-based private equity and alternative investment house for $825 million in cash, subject to certain purchase price adjustments. The transaction is expected to close in the third quarter of 2007.

Jones Apparel said it expects to report a net gain from this transaction of approximately $290 million. In light of available tax benefits, the company anticipates net cash proceeds after taxes and transaction expenses of approximately $770 million.