Jones Apparel Plans Closure of 165 Stores
- Feb 19, 2010
February 19, 2010
By Allison Landa, News Editor
In a statement that categorized an 8 percent decline in fourth-quarter revenues as “anticipated and reflective of the overall economic conditions that continue to affect retail sales in general”, New York-based Jones Apparel Group announced that they will be closing 165 locations this year.
That number is in addition to 100 stores that have already been closed. The company has not yet specified which locations are slated for closure.
In the statement, Jones Apparel chief executive officer Wesley Card said: “We have focused on revitalizing our core brands and organizational structure and have enhanced our product offerings by acquiring new brands and developing our new partnerships. We also streamlined our supply chain and distribution networks and closed marginally profitable businesses.”
The company’s brands include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, and Easy Spirit.
Revenues for the fourth quarter were $777 million, down from $847 million a year earlier. The company ended the quarter with $333 million in cash and repaid $250 million in long-term debt during the year. That leaves a total debt balance of $529 million, according to chief financial officer John T. McClain.
“Aggressive management of inventories and expenses helped conserve cash and improve margins,” McClain said in the statement. “We will maintain the same approach toward spending as we manage throughout 2010.”