Private-equity firm Sycamore Partners is nearing a deal to buy Jones Group Inc. (NYSE: JNY) for $15 a share, a transaction that would value the retailer at about $1.2 billion, according to two people familiar with the matter.
The two sides were initially expected to sign the deal Monday, however, they spent the day making final adjustments to paperwork for the transaction, a source told Women's Wear Daily. An announcement is still expected this week.
New York-based Jones put itself up for sale this summer after activist hedge fund Barington Capital Group took a stake in the company and urged it to spin off its portfolio, which includes over 35 fashion brands, including apparel, footwear, denim, jewelry and handbags. After a number of retail companies and private-equity firms expressed interest, Jones and its advisers had planned to finalize a sale over the summer, but the process was put on hold when a number of potential buyers dropped out of the negotiations.
Jones Group is the owner of fashion brands Jones New York and Nine West. In recent years, it has struggled to regain significant market share as it sought to reestablish its women's sportswear brand for Jones New York, which were sold in department stores. Jones Group's premium brands include Stuart Weitzman, Anne Klein and Rachel Roy, all of which have had slightly stronger sales for the company.
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