Jones Group Said to Weigh Sale of All or Part of Business
Jones Group Inc. (JNY), the owner of the Jones New York and Nine West fashion brands, is weighing a sale of all or part of the company, said people with knowledge of the matter.
The retailer is working with Citigroup Inc. (C) to examine options, said the people, who asked not to be named because the process is confidential. If Jones doesn’t find a buyer for the entire business, the company may sell some apparel brands, one of the people said. DealReporter first reported the sale process last week.
Chief Executive Officer Wesley Card has sought to turn around New York-based Jones Group by emphasizing higher-priced women’s apparel brands such as Rachel Roy and Stuart Weitzman, and by reviving the Jones New York and Anne Klein department-store sportswear brands. The company, whose market value is $1.26 billion, disclosed in April that it would shut 170 stores and cut 8 percent of its workforce after first-quarter profit trailed analysts’ estimates.
“Like most companies, Jones Group has ongoing relationships with a wide range of advisers,” said Sharon Stern, a spokeswoman for Jones Group with Joele Frank Wilkinson Brimmer Katcher. “As a matter of practice, the company does not share the specifics of these relationships.” Robert Julavits, a spokesman with Citigroup, declined to comment.
Jones Group shares advanced 7.6 percent to $15.75 in New York, the most in more than a year. The company generated more than $1 billion in sales in the first quarter ended April 6, according to a May 1 statement.
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