The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Announces 50% Equity Stake in Rachel Roy, Fashion Brand
Enters into Joint Venture Agreement with Rachel Roy, Damon Dash and TSM
Opportunities to Expand Rachel Roy Brand
NEW YORK, June 12 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) ("Jones" or the "Company") today announced that it has formed a
joint venture with Rachel Roy, Damon Dash and TSM Capital, LLC to develop,
market and license the New York-based fashion brand, Rachel Roy. Under the
terms of the agreement, Jones owns 50% of the joint venture interest. The
remaining interest is owned by the two founders, Rachel Roy and Damon Dash, as
well as TSM Capital which acquired a minority stake in the business last
November. Jones will assume operations of the existing designer collection
business under license with the new joint venture.
Rachel Roy launched her label in spring of 2005. Effortlessly elegant and
modern are adjectives that can be used to describe both the collection and the
woman, Rachel Roy. With striking silhouettes, a refined color palette and
inventive pairings that transition from day to evening, Rachel Roy embodies
everything for women who embrace fashion and dress with confidence and
sophistication. The line is currently available in premier luxury department
and select specialty stores in the United States, including Bergdorf Goodman,
Neiman Marcus, Nordstrom and Saks, and internationally in the United Kingdom,
Hong Kong, the United Arab Emirates, Kuwait, South Korea, Canada, Turkey and
Wesley R. Card, Jones Apparel Group President and Chief Executive Officer,
said, "Rachel Roy is a gifted design talent and represents the new wave of
modern fashion. We look forward to working closely with Rachel and Marvin's
team as we invest in the Designer business and explore opportunities to
broaden her reach to a larger audience. We see tremendous opportunity in
Rachel Roy as a designer and brand; we welcome her and her team to Jones."
Marvin Traub, one of TSM's founders, said, "We are pleased with the
success of the Rachel Roy brand since investing in the company in November
2007. We believe Rachel is an exciting fashion designer and Jones will be the
ideal partner to take the brand to the next level, both domestically and
internationally. I am very pleased that we have been able to enter into a
joint venture agreement with Jones only six months after completing our
initial investment in Rachel Roy. I very much look forward to working with
Jones to further develop the Rachel Roy brand."
Founder and artistic director, Rachel Roy, said, "TSM is an excellent
partner, and I am excited to be part of a leading American company like Jones,
which shares my commitment to quality and innovation. I am excited for the
future and to uncover the label's full potential."
Partner, Damon Dash, said, "Both Rachel and her clothing appeal to many
audiences around the world, making her a widely renowned design talent.
Through this partnership, we will be able to explore new opportunities for
Rachel Roy, the brand."
The Company noted that Rachel Roy and her team will work with Susan
Metzger, Chief Executive Officer of the Women's Wholesale Sportswear division.
Ms. Metzger will be responsible for the operations of the business.
Susan Metzger added, "I am thrilled that Rachel and her team are joining
Jones, and I look forward to working directly with them."
The joint venture partners plan to further develop the successful Rachel
Roy brand through continued global expansion of the wholesale business,
introduction of new product categories, and stand-alone retail stores in key
U.S. and international locations. Rachel Roy will continue to lead the
design, manufacturing and production of the brand. Additional terms of the
transaction were not disclosed.
About Jones Apparel Group, Inc.
Jones Apparel Group, Inc. (http://www.jny.com) is a leading designer,
marketer and wholesaler of branded apparel, footwear and accessories. The
Company also markets directly to consumers through its chain of specialty
retail and value-based stores. The Company's nationally recognized brands
include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper,
Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo Angiolini, Joan &
David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Albert Nipon and
Le Suit. The Company also markets costume jewelry under the Givenchy brand
licensed from Givenchy Corporation and footwear under the Dockers Women brand
licensed from Levi Strauss & Co. Each brand is differentiated by its own
distinctive styling, pricing strategy, distribution channel and target
consumer. The Company contracts for the manufacture of its products through a
worldwide network of quality manufacturers. The Company has capitalized on its
nationally known brand names by entering into various licenses for several of
its trademarks, including Jones New York, Evan-Picone, Anne Klein New York,
Nine West, Gloria Vanderbilt and l.e.i., with select manufacturers of women's
and men's products which the Company does not manufacture. For more than 30
years, the Company has built a reputation for excellence in product quality
and value, and in operational execution.
About Rachel Roy
Founded in 2004, by existing shareholders Rachel Roy and Damon Dash, the
Rachel Roy collection embodies effortless glamour, and is sophisticated with a
modern edge. In 2007, Rachel Roy was inducted as a new member to the Council
of Fashion Designers of America. The Rachel Roy collections are available at
Saks Fifth Avenue, Bergdorf Goodman, Neiman Marcus, Nordstrom and designer
specialty stores worldwide. For more information, please visit
About TSM Capital, LLC
TSM Capital was founded in 2007 by Marvin Traub, Mortimer Singer and
Aslaug Magnusdottir. The company specializes in investments in early stage
apparel, accessories, jewelry, cosmetics and home furnishing brands and
retailers in the U.S. and internationally. TSM Capital is headquartered in New
York. Special advisor to TSM Capital on marketing, PR and styling is Lauren
Davis, contributing editor and stylist. In August 2007, TSM Capital announced
its first transaction, which involved an investment in British designer brand
About Damon Dash
At 37-years-old, Damon Dash has constructed a business empire, which began
with the powerhouse Roc-A-Fella Records, signing artists Jay-Z and Kayne West
among numerous others. Dash then started Rocawear and has since spurred the
creation of a number of influential brands. His portfolio includes apparel,
entertainment, publishing, film, spirits, automotive and a non-profit
community outreach foundation. An enviable figure with his peers, business
leaders and aspiring entrepreneurs, a key to Dash's success is his ability to
reach a cross-section of cultures and audiences. Dash has evolved from a music
mogul to become an international businessman.
Forward Looking Statements
Certain statements contained herein are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
All statements regarding the Company's expected financial position, business
and financing plans are forward-looking statements. The words "believes,"
"expect," "plans," "intends," "anticipates" and similar expressions identify
forward-looking statements. Forward-looking statements also include
representations of the Company's expectations or beliefs concerning future
events that involve risks and uncertainties, including:
- those associated with the effect of national and regional economic
- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence;
- the performance of the Company's products within the prevailing retail
- customer acceptance of both new designs and newly-introduced product
- the Company's reliance on a few department store groups for large
portions of the Company's business;
- consolidation of the Company's retail customers;
- financial difficulties encountered by customers;
- the effects of vigorous competition in the markets in which the Company
- the Company's ability to attract and retain qualified executives and
other key personnel;
- the Company's reliance on independent foreign manufacturers;
- changes in the costs of raw materials, labor, advertising and
- the general inability to obtain higher wholesale prices for the
Company's products that the Company has experienced for many years;
- the uncertainties of sourcing associated with an environment in which
general quota has expired on apparel products (while China has agreed
to safeguard quota on certain classes of apparel products through 2008,
political pressure will likely continue for restraint on importation of
- the Company's ability to successfully implement new operational and
financial computer systems; and
- the Company's ability to secure and protect trademarks and other
intellectual property rights.
A further description of these risks and uncertainties and other important
factors that could cause actual results to differ materially from the
Company's expectations can be found in the Company's Annual Report on Form
10-K for the year ended December 31, 2007, including, but not limited to, the
Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors
therein, and in the Company's other filings with the Securities and Exchange
Commission. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, such expectations may prove to
be incorrect. The Company does not undertake to publicly update or revise its
forward-looking statements as a result of new information, future events or
SOURCE Jones Apparel Group, Inc.
CONTACT: John T. McClain, CFO of Jones Apparel Group, +1-212-642-3860;
Aslaug Magnusdottir, Managing Director of TSM Capital, LLC, 1+646-723-2973,
firstname.lastname@example.org; Debra Thom of HL Group for Rachel Roy, +1-212-529
5533, email@example.com; or Joele Frank and Sharon Stern, both of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449 /
/Web site: http://www.jny.com