Sycamore was originally looking to buy the apparel side of Jones, while KKR & Co. was interested in acquiring the footwear business. But KKR dropped out and Sycamore shifted its interest to footwear and G-III Apparel Group zeroed in on the apparel business.
WWD reported in November that G-III dropped out, leaving the field to Sycamore.
WSJ.com reported Thursday that the deal would value Jones at $1.2 billion, or $15 a share. The stock rose 4.7 percent to $14.37 on Thursday with 3.6 million shares trading hands — more than three times the daily average.
It’s a big fish for Sycamore to reel in. Jones logged sales of $3.75 billion last year from about 35 brands.
Led by Stefan L. Kaluzny, Sycamore owns The Talbots Inc., Hot Topic Inc. and MGF Sourcing. Should a deal close, the company is expected to turn around and sell or license out parts of the business and perhaps to some familiar names.
G-III is said to still be interested in the Jones New York brand and Sherson Group, a longtime licensee of Jones’ Nine West footwear brand, previously hired investment bank Avalon Net Worth to try to buy the moderate footwear portfolio.
Peter Kim's Los Angeles-based premium denim line has always had its finger on the pulse of youth. This season, novelty is back in a way reminiscent of early Aughts, with studs, lace-ups, racing waxed denim and more. For more highlights if some of the key brands at the Vegas trade shows, go to WWD.com. #wwdfashion (📷: Patrick Gray; Styles by @thealexbadia; Story by @karihamanaka and @marcy_wwd)
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