Women'S Wear Jones New York Canadian Operators Filed For Bankruptcy

As report goes,

Canadian operators have filed for bankruptcy, which also means that

All 37 stores in Canada will be closed, while about 300 will be unemployed.

In early 2015, after acquiring Jones New York's parent The Jones Group Inc. group, the private equity Sycamore Partners LP wanted to close the world's 127 stores, including Canada. However, three months later, the Sycamore Sycamore was about to be sold to the brand management company of the industry that wanted 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 Dave McGregor, who was ambitious last year, said that although the Jones New York store was closed, he believed that the Canadian market could be revitalized and Canada was considered to be able to revitalize the Canadian market.

The capacity 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.

In the 2012 fiscal year, Jones New York, whose main customer group is women over the age of 45, earned $643 million, but the brand business declined sharply in the following years until the pfer of private equity funds.