Dubai loses control of luxury retailer Barneys

DUBAI, United Arab Emirates (AP) — Dubai’s state-run investment firm Istithmar World has lost control of upscale retailer Barneys New York.

Barneys says it has reached a deal with Istithmar and its largest lender Perry Capital to significantly shrink the retailer’s $590 million debt load in exchange for Perry acquiring a controlling stake. Billionaire Ron Burkle’s Yucaipa Companies will also own part of the company.

Barneys says it will now hold just $50 million in long-term debt. It announced the change in ownership in a statement issued Monday afternoon in New York.

Istithmar bought the luxury chain in 2007 from Jones Apparel Group Inc. for $942 million.

Istithmar is part of the struggling state conglomerate Dubai World, which was at the heart of the emirate’s financial meltdown in 2009.