Our favorite struggling department store, Barneys New York, got more bad news this morning: Its parent company, Istithmar, is going to have to pump another undisclosed amount of cash into the debt-ridden retailer. (That's according the the NY Post.)
Istithmar, a Dubai-based private equity firm, bought Barneys three years ago for way too much money--$942 million--and the value of the retailer has continued to decrease. While luxe department stores like Neiman Marcus and Bergdorf Goodman have been able to bounce back (even just a little) from the recession, Barneys continues to struggle.
And it's not for lack of a great brand and great clothes. The problem still goes back to this: No one is running the business.
