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It sounds like department store mainstay Jones New York is done. Yesterday, the brand announced it will be discontinuing its wholesale business and shuttering all 127 retail locations. The last Jones New York collection will be spring 2015; the business will wind down over the summer. "We recognize that the Jones New York brand is important to many loyal customers, and we are pursuing strategic alternatives for the brand," the company's interim chief executive officer Andrew Hede said.
Last year, private equity firm Sycamore Partners acquired Jones New York as part of a $1.2 billion deal, or $2.2 billion including debt, according to CNBC. Jones New York's recent struggles include a failed repositioning to appeal to younger customers, and an inability to keep up with other sportswear names like Michael Michael Kors, Calvin Klein, Lauren Ralph Lauren, and Vince Camuto.
A source told WWD that in light of the Jones New York news, retailers were "scrambling to understand what it means. They are trying to figure out whether the brand will continue, who is leaving, who is staying and who might want to buy it. What they are trying to figure out, too, is what will they put in the space currently occupied by the brand."
· Jones New York To Close Stores, End Wholesale Business [CNBC]
· Jones New York to Shutter Operations [WWD]
· Kate Spade to Shut Down All Kate Spade Saturday and Jack Spade Stores [Racked]