Jones Apparel Group, Inc. said Tuesday that a $900 billion bid for its Barneyâ€™s unit from Japanese retailer Fast Retailing Co. Ltd. was â€œsuperiorâ€ to an agreement signed earlier with an affiliate of Dubai-based Istithmar.
Jones says it has informed Istithmar of its intention to accept the Fast offer, and can terminate the previous agreement within three days, unless Istithmar offers a bid â€œat least as favorable.â€
Breaking the $825 million Istithmar agreement will cost Jones $22.7 million.
Fast Retailing submitted an updated proposal to Jones on Monday, reaffirming the $900 million amount but included a form of stock purchase agreement that is not subject to adue diligence condition.
Fast Retailing is committed to supporting Barneys' continued growth and unique position as one of the leading luxury department store brands in the world, the company said in a statement.
Jones, which owns clothing, shoes and accessories brands such as Nine West,and Jones New York, put itself up for sale last year but failed to find a buyer.
It agreed to sell Barneys in June to Istithmar after several months of negotiations.
Earlier this month its Chief Executive Peter Boneparth resigned, and that Wesley Card, the company's chief financial officer and chief operating officer, replaced him.