US-based designer and wholesaler of branded apparel, footwear and accessories Jones Apparel Group, Inc. has entered into a definitive agreement to sell its wholly-owned subsidiary Barneys New York, Inc. to an affiliate of Istithmar, a Dubai-based private equity and investment house for $825 million in cash, subject to certain purchase price adjustments.

Commenting on the decision to sell the luxury retailer, president and CEO of Jones Apparel, Peter Boneparth, stated, "We are very pleased to enter into this transaction, which realises significant value for our investment in Barneys and provides us with the opportunity to use the net proceeds to enhance shareholder value. Furthermore, going forward, because the sale will reduce the level of required capital expenditures we will have greater financial flexibility in the execution of our business strategy."