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Tue 29 Oct 2019 12:42 PM

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Former Istithmar World CEO partners with Saudi perfume giant in bid for US retailer Barneys

Second Middle East investor also involved with sales hearing scheduled for Thursday

Former Istithmar World CEO partners with Saudi perfume giant in bid for US retailer Barneys

Istithmar World bought the 96-year-old company in 2007 for $942 million but relinquished majority ownership in 2012 to Perry Capital.


Former chief executive of Dubai-based Istithmar World, David Jackson, has joined forces with Saudi Arabia’s Arabian Oud, the largest perfume retailer in the Middle East, to launch an 11th-hour bid to buy US luxury department store chain, Barneys, according to media reports.

Istithmar World bought the 96-year-old company in 2007 for $942 million but relinquished majority ownership in 2012 to Perry Capital.

Jackson told the New York Post he was ready to offer around $271.4m for Barneys intellectual property by licensing firm Authentic Brands Group (ABG).

“We still believe there is a window for us on the 31st (October) to submit a fully funded proposal and write a check on the spot,” he is quoted as saying.

He revealed that Arabian Oud, which boasts 900 stores around the world, would be a “strategic and financial partner”.

It is understood a second Middle Eastern company is involved in the funding proposal although Jackson is keeping its identity a secret.

According to the report, ABG plans to keep Barneys’ seven stores open, including the iconic flagship store on Madison Avenue.

However, it faces competition from a second bidder in the shape of Sam Ben-Avraham, a trade show executive who was an investor in streetwear brand, Kith, who has already had a $260m offer rejected.

The sales hearing is scheduled to be heard on Thursday.

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