Having struggled for months to name a new CEO at Barneys, the owners of the luxury chain are now tripping over their own feet.
Istithmar, the investment arm of the Dubai government that shelled out nearly $950 million to buy Barneys, settled on an executive to replace former CEO Howard Socol “several weeks ago” following a search that lasted more than six months, a source told The Post.
But Istithmar isn’t expected to announce the identity of the winning candidate anytime soon, sources said. Possible names that have circulated include former Gucci CEO Mark Lee, although people close to him say he professes to be “burned out” and not interested.
There’s also been talk in recent days that Istithmar hasn’t been able to agree on a compensation package for the new CEO.
The real problem, sources said, is that Istithmar has developed a case of “buyer’s remorse” and may elect to sell the retailer altogether.
Bloomberg News first reported last week that Istithmar was weighing a possible sale of Barneys. But that doesn’t mean it’s actively pursuing a deal yet.
Sources said Istithmar has “put out feelers” to a few prospective buyers – among them a European conglomerate, according to one. Under current market conditions, Barneys would likely fetch less than half what Istithmar paid for it.
But the investment firm also has been “unresponsive” to recent expressions of interest from potential buyers, according to people familiar with the matter.
Sources said top officials at Barneys were surprised by last week’s reports that the company might be sold.
“I think the story here is that Barney’s isn’t for sale,” one top exec said. Some insiders have even speculated the deal in question is a transfer of Barneys ownership between two Dubai funds.
Still, there’s a case to be made for a recent change of heart in the Persian Gulf kingdom, which has been hit by plunging oil prices. They were caught “totally off guard” by the collapse in US luxury spending, according to one source.