Dubai government investment agency Istithmar, which agreed last week to buy Barneys New York Inc for $942.3 million, said the US luxury-clothing store plans to open up to five outlets at a cost of as much as $100 million. Istithmar, which agreed to buy Barneys from Jones Apparel Group Inc, said on Sunday it will first focus on expanding Barneys in the United States, then overseas and finally on increasing online sales.
"We can probably open three to five stores right out of the box," Istithmar Chief Executive Officer David Jackson said on Dubai Eye radio. Each store cost about $20 million to develop, he said.
Istithmar wants to expand Barneys in Asia outside Japan, where it has three stores, and increase online sales as a percentage of total to double digits from the "low single digits," Jackson said, without being more specific. Outside Japan, "other Asian markets are quite interesting," Jackson said, without identifying any nations.
Istithmar could consider opening Barneys in China and the Middle East, Jackson told Reuters last month.
Istithmar typically finances acquisitions by borrowing between 50 percent and 75 percent of the cost, Jackson said, without being specific about the Barneys deal.
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