In some very welcome news, Barneys' parent company has decided to infuse
$25 million into the chain's coffers to ensure that deliveries of fall merchandise continue uninterrupted and to ease the fears of vendors and factors.
"I believe Barneys was strong enough to survive without the support, but because vendors and factors were nervous we elected to put some more capital in to help decrease their level of concern," David Jackson, chief executive officer of Istithmar World Capital, the parent of Barneys, told WWD.
Jackson would not confirm the $25 million report, but he did characterize the level of support as "significant," adding, "In this environment, where everybody is hoarding cash, we are trying to send a signal that we are supporting the business."
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Earlier, Jackson released a statement that, "Istithmar World Capital has provided a significant level of additional capital to support Barneys New York. Working closely with management, we believe that this amount allows the company financial flexibility to work with the company's major vendors and financial intermediaries. The plan enables the company to meet its 2009 schedule of shipments. We will continue to monitor the company's performance but we are confident that no further injection is needed at this time."
Standard and Poor's had downgraded Barneys just the day before the cash infusion. This should send a signal that Istithmar World Capital is in this for the long haul.
In some very welcome news, Barneys' parent company has decided to 
