Jones New York to Close Stores and Seek Strategic Alternatives

NEW YORK, United States — Jones New York, the women's clothing brand owned by Sycamore Partners, said it will seek strategic alternatives and close its outlet stores.

Jones New York will also discontinue its wholesale business, according to a statement today. All 127 outlet locations will close throughout 2015.

Sycamore Partners agreed to acquire Jones Group Inc., the owner of the Jones New York and Nine West fashion brands, in December 2013 in a deal that valued the retailer at $1.2 billion. The Jones New York brand, which is sold in mid-priced department stores like Macy’s, has struggled in recent years as retailers ramped up their exclusive-label goods to draw shoppers.

“We recognize that the Jones New York brand is important to many loyal customers, and we are pursuing strategic alternatives for the brand,” Interim Chief Executive Officer Andrew Hede said in the statement today. “We will work with our wholesale customers and vendors to ensure an orderly transition over the course of this year.”

Sycamore was started in 2011 by two executives from buyout firm Golden Gate Capital Corp. The firm recently sold Stuart Weitzman Holdings LLC to Coach Inc. for $530 million.

By: James Callan; editors: Cecile Daurat, James Callan and Kevin Orland.