Japanese retailer raises Barneys bid
Fast Retailing Co., Asia’s largest clothing retailer, increased its offer for the Barneys New York chain to $950 million as it seeks growth in the U.S. market.
Barneys owner Jones Apparel Group Inc., based in Bristol, Pa., said Sunday that it would accept the offer unless a rival bidder from Dubai could match that bid by Wednesday.
The revised offer was made Friday, Fast Retailing said in a statement to the Tokyo Stock Exchange on Sunday.
Fast Retailing aims to double annual sales to $8.5 billion by 2010 by expanding in its home market and overseas.
The company, based in Yamaguchi in western Japan, opened a New York flagship store in November to increase sales of its Uniqlo brand of clothes.
“This is part of Fast Retailing’s attempt to expand its retail portfolio around the world,” said Masafumi Shoda, an analyst at Nomura Securities in Tokyo. “The price is high but not extraordinarily high.”
The Dubai company, Istithmar, previously bid $825 million to purchase Barneys under an agreement that allowed competing offers, including any bids for all of Jones. Fast Retailing, which made an earlier offer of $900 million, first disclosed its interest July 5.
Barneys New York has seven stores that sell Marc Jacobs clothes and Christian Louboutin shoes. It also operates 14 co-op stores that sell fashion to younger shoppers and 13 discount outlet stores.
Jones will pay $22.7 million to Istithmar should the company decide to drop the Dubai firm’s offer, Jones said.
Fast Retailing, founded in 1963, operates 1,800 stores in 12 countries. Its apparel brands include Theory, Comptoir des Cotonniers and Princesse tam tam.
