Los Angeles supermarket magnate Ron Burkle went upscale with the latest addition to his portfolio: fashion retailer Barneys New York.
Burkle’s Yucaipa Cos. and Perry Capital took ownership of Barneys in a debt-restructuring deal, Barneys announced Monday. Perry Capital is the majority owner. The deal slashes Barneys' debt from $590 million to $50 million.
“This agreement provides us with increased free cash flow that will be used to revitalize our stores, invest in Barneys.com and further enhance our customer experience at a time when our operational financial performance is very strong,” Barneys Chief Executive Mark Lee said in a statement.
Burkle had originally made an offer to take a controlling stake in the company in 2010. At the time, he offered to inject $50 million into the chain in a deal that would have given him 80% of the company’s common stock. The deal never went through.