The Jones Company Inc., is poised to sell off its apparel and footwear units as pre-sale talks with potential buyers proceed to the final agreement of all concerned.
G-III Apparel Group is the potential buyer of Jones’s apparel unit, and Sycamore Partners will buy the footwear unit.
Jones owns and licenses more than thirty-five brands, including Gloria Vanderbilt, Rachel Roy, Easy Spirit, Anne Klein, Bandolino, Jessica Simpson, Givenchy and Jones New York sportswear. Jones also sells jeanswear, jewelry and handbags.
Jones’s footwear brands include Stuart Weitzman, Kurt Geiger and Nine West.
The firm is led by Stefan L. Kaluzny,
Although definite dates have not been set for the two transactions to be completed, the deal could close around October 30, when Jones reports Q3 earnings in a scheduled conference call.
Another factor reportedly holding up the sales, is the complexity of separating out the two Jones’s unit into discrete entities.
G-III’s acquisition of the Jones apparel line, will boost the company’s size and importance in the garment industry.
The firm, valued at about $1.4 billion, and run by chairman and CEO Morris Goldfarb, manufactures licensed apparel products under such global brands as Calvin Klein, Kenneth Cole and Tommy Hilfiger.
The anticipated Jones deal reflects G-III’s strategy to grow through acquisitions. Earlier in October, the firm acquired G.H. Bass & Co., from PVH Corp for a reported $50 million.
If and when the Jones-Sycamore deal is completed, Sycamore will have to determine how to manage and position its new acquisition. The firm with either run the footwear line itself or bring in a partner to assist in operations.
Sycamore, led by Stefan L. Kaluzny, has been adding recently to its fashion holdings, acquiring The Talbots Inc., Hot Topic Inc., and buying a sourcing unit from Limited Brands.