Burkle seeks control of Barneys New York-WSJ

* username: rupertbu

Supermarket mogul Ron Burkle and his investment vehicle Yucaipa Cos has proposed taking a controlling stake in U.S. luxury retail chain Barneys New York in exchange for a $50 million cash infusion, a source familiar with the matter told the Wall Street Journal.

A Yucaipa spokesman could not be immediately reached for comment. Details of the proposal were laid out in a Dec. 11 letter from Burkle to the former chief executive of Dubai's Istithmar World Capital, which owns the retail chain, the Journal reported.

Last November, Yucaipa purchased a large amount of Barneys debt from Citigroup Inc (C.N) at about 60 cents on the dollar, the Journal said.