Jones Apparel Group's (jny.com) board of directors have conceded that the offer by Fast Retailing Co., Ltd. to buy Barneys New York (barneys.com) for USD900 million, is more beneficial for the company than the standing offer from Istithmar (istithmar.ae), the Dubai based investment firm whose bid for Barneys is $825 million.

Istithmar is expected to make a counter offer in the next few days, otherwise Jones plans to accept the better offer from Fast, and will pay Istithmar affiliates a $22.7 million termination fee per their original agreement.

In their quarterly report per 1st AUgust, Jones Apparel reported that revenues during the second quarter this year were $904 million, down from $924 million one year ago at this time. They blamed poor retail sales resulting in widespread markdowns of inventory.

Jones Apparel Group, whose brands include Jones New York, Anne Klein, Nine West and Easy Spirit, decided to sell Barneys New York after a relatively short period of ownership, having acquired the luxury retailer just three years previously, in 2004.