Jones Apparel Does Not Receive Revised Proposal From Fast Retailing
10 August 2007 - 8:38AM
PR Newswire (US)
NEW YORK, Aug. 9 /PRNewswire-FirstCall/ -- Jones Apparel Group,
Inc. (NYSE: JNY; the "Company" or "Jones") today announced that the
period during which Fast Retailing Co., Ltd. ("Fast Retailing")
could make a new proposal to acquire the Company's wholly owned
subsidiary Barneys New York, Inc. ("Barneys") has expired and that
Fast Retailing has not amended its offer. As such, Jones is moving
forward with the sale of Barneys to affiliates of Istithmar PJSC
("Istithmar"). On August 8, Jones amended its Stock Purchase
Agreement (the "Istithmar Agreement") with affiliates of Istithmar
to increase the purchase price under the Istithmar Agreement to
$942.3 million in cash. Under the terms of the Istithmar Agreement,
Jones no longer may accept proposals to acquire Barneys or
terminate the Istithmar Agreement for a superior proposal. Jones
expects that the closing of the sale of Barneys to affiliates of
Istithmar will occur in the third quarter of 2007. About Jones
Apparel Group, Inc. Jones Apparel Group, Inc.
(http://www.jny.com/), a Fortune 500 company, is a leading
designer, marketer and wholesaler of branded apparel, footwear and
accessories. The Company also markets directly to consumers through
our chain of specialty retail and value-based stores, and operates
the Barneys New York chain of luxury stores. The Company's
nationally recognized brands include Jones New York, Evan-Picone,
Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine
West, Easy Spirit, Enzo Angiolini, Bandolino, Joan & David,
Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Kasper,
Anne Klein, Albert Nipon, Le Suit and Barneys New York. 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 primarily 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 Barneys New York, Inc. Barneys
New York, Inc. (http://www.barneys.com/), a wholly owned subsidiary
of Jones Apparel Group, Inc., is a luxury retailer with flagship
stores in New York City, Beverly Hills, Chicago, Boston and Dallas.
Barneys also operates two regional full-price stores, fourteen
CO-OP Barneys New York stores, thirteen outlet stores and two
semi-annual warehouse sale events. 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: --
the outcome of any legal or regulatory proceeding that may be
instituted against the Company and others following announcement of
a transaction for the divestiture of Barneys; -- the failure to
obtain the necessary financing arrangements to consummate a
divestiture of Barneys; -- the occurrence of any event, change or
other circumstances that could give rise to the termination of the
Istithmar Agreement; -- the failure of either party to meet the
closing conditions set forth in the Istithmar Agreement; -- the
amount of costs, fees, expenses and charges related to the
divestiture of Barneys; -- non-expiration of the waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976; --
those associated with the effect of national and regional economic
conditions; -- 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 environment; -- customer acceptance of both new designs and
newly-introduced product lines; -- 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 operates;
-- the Company's ability to identify acquisition candidates and, in
an increasingly competitive environment for such acquisitions,
acquire such businesses on reasonable financial and other terms; --
the integration of the organizations and operations of any acquired
businesses into the Company's existing organization and operations;
-- the Company's reliance on independent foreign manufacturers; --
changes in the costs of raw materials, labor and advertising; --
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 the new
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 apparel); -- 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 fiscal year ended
December 31, 2006, 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 otherwise. DATASOURCE: Jones Apparel Group, Inc. CONTACT:
Joele Frank and Sharon Stern of Joele Frank, Wilkinson Brimmer
Katcher for Jones Apparel Group, Inc., +1-212-355-4449 Web site:
http://www.jny.com/ http://www.barneys.com/
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