Jones Explores Sale of Company
The Jones Apparel Group, Inc. said this week its board of directors is considering the sale of the entire $5 billion company.
The company is looking for a buyer for all of its brands and wouldn’t consider selling individual brands or divisions, Jones said in a statement. Bristol, PA-based Jones Apparel Group, a designer and wholesaler of branded apparel, footwear and accessories, said it hired Goldman Sachs as its financial advisor to assist in the process.
The company’s brand portfolio includes Jones New York, Evan-Picone, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Kasper, Anne Klein, Albert Nipon, Le Suit and Barneys New York.
Overall, Jones has had little demand in its wholesale footwear and accessories businesses. However, the company’s 2004 purchase of Barneys gave it a stronger position in the luxury market. Sales at its Barneys New York stores accounted for 10.8% growth last year, the company said in February. Last year, Jones Apparel reported a 9% increase in revenue, from $4.7 billion to $5.1 billion.
The merger of its two largest wholesale customers, Federated and May stores, (Xtra, March 1, 2005), combined with uncertain economic times made 2005 a challenging year, Jones President and CEO Peter Boneparth said in a statement last month. The company expected “similar challenges” in 2006, projecting 2006 net revenues to range from $4.65 billion to $4.75 billion, he said.
Despite its challenges, Jones made a concerted effort to better connect with consumers and employees. Last summer, the company launched its first corporate-wide philanthropic campaign, Jones New York In the Classroom, which gave teachers additional support via fundraisers, partnerships and in-school activities (PROMO August 2005)
