Creditors are now looking to re-claim Barneys clothing store from one of Dubai’s sovereign private equity firms, according to the NY Post.
Hedge-fund tycoon Richard Perry and Los Angeles billionaire Ronald Burkle have become big creditors by buying up the bonds of Barneys. Both are ready and waiting to scoop it up, according to the New York Posst.
Istithmar bought the store for $942 million in 2007 and might now have to sell it, especially if holiday sales are bad. Istithmar is an investment arm of Dubai World, the Dubai based company that last week announced it would delay payment on its debt.
“Perry quietly became Barneys’ largest bondholder earlier this year, and Burkle has recently amassed a big chunk of the luxury chain’s $500 million debt load.”