Istithmar Denies Barney's Sale Rumors

In addition to battling the recession, sharp declines in luxury spending, and lately a handful of factors — including Hilldun Corp. and Rosenthal & Rosenthal Inc. — that have stopped approving shipments, Barneys has been dogged by speculation that Istithmar wants to unload the business amid mounting financial pressures. But on Monday, Jackson went on the defensive, flatly denying the for-sale rumors and even contending Barneys is outperforming the competition.

"There are a lot of rumors about Barneys, about what's going on. All of these are unfounded and unwarranted," Jackson said. "Barneys is owned by Istithmar and will continue to be owned by Istithmar and will do everything it can to protect that investment. "I would say most of those [factor] inquiries are general things, about the overall health of the industry.... Some of the requests coming from factors are unwarranted."

So what do the factors want? "Some of it is as simple as providing some information; some things are more tangible in terms of support," meaning financial support. Asked how many factors are at issue, Jackson replied, "Management has indicated to us there are four or five conversations they want us to have. I most want to put to rest any concerns that these factors have so Barneys' management can focus on running the business and not on idle speculation about the financial strength of Barneys or concerns about Istithmar standing behind Barneys," added Jackson.