Barneys New York Gets Much-Needed Cash Boost
In January I mentioned that Barneys New York might be up for sale but it seems that the Dubai-based investment fund Istithmar World will be holding on to the luxury department store a little longer (mainly because, right now, no one is buying). Reuters reports that Barneys got a major infusion of money that will allow it to pay for its shipments for the rest of the year.
It was a much needed boost which came immediately after Standard & Poor's cut Barneys to a deeply distressed level warning that vendors might limit shipments. Istithmar has not revealed the amount of the monetary pick-me-up but earlier this month the New York Post said that Istithmar planned to spend at least $10 million. The funds give the troubled department store a little breathing room to stay afloat during these times when spending is low. Luxury department stores have been hit hard by the recession and are cutting back on expenses and inventory until shoppers find their way back to the store aisles.