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Wed 15 Apr 2009 10:31 AM

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Dubai firm bails out Barneys of New York

Istithmar World Capital has given Barneys a "significant" level of extra capital but amount undisclosed.

Dubai firm bails out Barneys of New York
BAIL OUT: Barneys of New York has received an undisclosed sum from Istithmar World Capital so it can continue to do business through 2009. (Getty Images)

Dubai-based Istithmar World Capital has announced it has provided a "significant" level of extra capital to support Barneys of New York as it struggles to retain financial stability amid the global econmic crisis.

The bail out, for an undisclosed sum, will allow Barney's to meet its 2009 schedule for shipments, said Istithmar which bought the US luxury retailer two years ago.

"Working closely with management, we believe that this amount allows the company financial flexibility to work with the company's major vendors and financial intermediaries," the comonay said in a statement posted on its website on Wednesday.

"The plan enables the company to meet its 2009 schedule of shipments. We will continue to monitor the company's performance but we are confident that no further injection is needed at this time," the statement added.