Jones New York Canadian Operator Filed For Bankruptcy

It is understood that Jones New York Canadian operator filed for bankruptcy, which means that the brand will close in 37 Canadian stores, and at the same time some 300 employees will lose their jobs.

In early 2015, after the acquisition of Jones New York parent The Jones Group Inc. group,

Sycamore Partners LP wants to close the world's 127 stores, including Canada, but three months later, Sycamore Partners LP is about to sell its brand to Authentic Brands Group LLC, the brand management company that wants to dominate the industry.

Subsequently, ABG sold Jones New York Canada's assets and regional agency rights to Grafton Frase Inc., which set up a subsidiary in Canada to operate Jones New York brand independently.

Grafton Frase Inc. CEO and CEO Dave McGregor was ambitious last year, saying that although the Jones New York store is closed, he believes it can be revitalized.

It also believes that the Canadian market can reach 110 stores.

However, the development of things obviously did not go according to the prediction of Dave McGregor.

According to the bankruptcy documents, because ABG can not supply Grafton Frase Inc. in time, Grafton Frase Inc. must look for other suppliers, thus having to bear higher cost and freight.

In addition, the sales of Jones New York in the Canadian market are not ideal, and the most critical liquidity has become the last straw to crush the company: the net assets of the company are 15 million 749 thousand Canadian dollars, and liabilities are as high as 71 million 987 thousand Canadian dollars.

Women over the age of 45 are the main customers.

In the 2012 fiscal year, the revenue was $643 million, but the brand business declined sharply in the following years until the pfer of private equity funds.