P.M. BRIEFING : Japanese Aid Barney Expansion

One of Japan’s biggest retailers said today it will help Barneys New York open the largest specialty retail store in Manhattan in more than 60 years, betting that a choice Midtown location would draw hordes of Japanese tourists.

Earlier this month, Barneys opened a store in Tokyo’s Shinjuku shopping district that is managed jointly with the Japanese retailer Isetan.

Under the latest venture, the two have bought half of a building located on Madison Avenue near Central Park. The store, to open in 1992, will cover 230,000 square feet, with 50,000 square feet for office space.

“The main purpose is to make Barneys’ name known in Japan by moving its main store from its current downtown location to Madison Avenue, where many Japanese tourists visit,” an Isetan spokesman said.

Isetan of America Inc., a subsidiary of a wholly owned Isetan European unit, paid $116 million for the store space, with Barneys paying less than 10%.