Ron Burkle has offered to take a majority stake in Barneys as the luxury icon’s Middle Eastern owners scramble under a crushing debt load.
The Los Angeles billionaire, who scooped up nearly half of Barneys’ debt last fall, has offered to inject another $50 million through a loan that would give him an 80 percent equity stake in the retailer, according to a Dec. 11 letter obtained by The Wall Street Journal.
“It’s basically an idea that’s being floated,” a source told The Post. “It’s totally unclear what, if anything, could come of it.”
Burkle — who together with hedge-fund tycoon Richard Perry now owns most of Barneys’ debt — believes investing in Barneys is “a good bet” whether he takes an equity position or remains a creditor, the source added.
“Either way, [Burkle] thinks it will work out fine,” the source said.
Sources noted that Dubai-based Istithmar, which has seen Barneys’ value plummet since it shelled out $942 million for the company in 2007, doesn’t have to negotiate with Burkle as long as it continues to service Barneys’ debt.
Istithmar isn’t currently considering Burkle’s offer, a source close to the firm said, and Barneys’ operations currently are self-funding after an improved holiday season.