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NEW YORK CITY-The Japanese company Fast Retailing has increased its offer to buy the luxury chain Barneys New York from the Jones Apparel Group to $950 million. The bid tops a $900-million offer last week to buy the chain.

In addition, the offer is higher than an $825-million proposal submitted earlier by Dubai-based private-equity firm Istithmar. That company now has until Aug. 8 to submit a more favorable proposal.

The Barneys chain is made up of flagship stores here, Beverly Hills, Chicago, Boston and Dallas; two regional full-price stores; 14 CO-OP Barneys New York stores; and 13 outlet stores. If the Istithmar bid is refused, Jones must pay the firm a $22.7-million cancellation fee.

Jones’ other chain footwear and apparel stores, which include Easy Spirit, Jones New York, Nine West and others, fell 8% year over year during the second quarter, which ended July 7. The sales deterioration started during last year’s fourth quarter and is due to a “weak retail climate,” said Wesley Card, Jones’ president and chief executive officer, during a conference call.

The company is investing money in store renovations and does not expect major store closures beyond what it usually undertakes on a yearly basis, Card says. The firm is also considering acquiring more chains. “We’re always looking at opportunities,” he says.

Jones posted a loss of 44 cents per share during the quarter, compared to earnings of 32 cents per share during the same year-ago period. Total revenues were $904 million, down from $924 million.

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