Jones Apparel Group, Inc. Aquires Stake in Rachel Roy

Jones Apparel Group, Inc.  announced that it has formed a joint venture with Rachel Roy, Damon Dash and TSM Capital, LLC to develop, market and license the New York-based fashion brand, Rachel Roy. Under the terms of the agreement, Jones owns 50% of the joint venture interest. The remaining interest is owned by the two founders, Rachel Roy and Damon Dash, as well as TSM Capital which acquired a minority stake in the business last November. Jones will assume operations of the existing designer collection business under license with the new joint venture.

Founder and artistic director, Rachel Roy, said, "TSM is an excellent partner, and I am excited to be part of a leading American company like Jones, which shares my commitment to quality and innovation. I am excited for the future and to uncover the label’s full potential."

Rachel Roy launched her label in spring of 2005. Effortlessly elegant and modern are adjectives that can be used to describe both the collection and the woman, Rachel Roy. With striking silhouettes, a refined color palette and inventive pairings that transition from day to evening, Rachel Roy embodies everything for women who embrace fashion and dress with confidence and sophistication. The line is currently available in premier luxury department and select specialty stores in the United States, including Bergdorf Goodman, Neiman Marcus, Nordstrom and Saks, and internationally in the United Kingdom, Hong Kong, the United Arab Emirates, Kuwait, South Korea, Canada, Turkey and Indonesia.

Partner, Damon Dash, said, "Both Rachel and her clothing appeal to many audiences around the world, making her a widely renowned design talent. Through this partnership, we will be able to explore new opportunities for Rachel Roy, the brand."

The Company noted that Rachel Roy and her team will work with Susan Metzger, Chief Executive Officer of the Women’s Wholesale Sportswear division. Ms. Metzger will be responsible for the operations of the business.

The partners plan to further develop the successful Rachel Roy brand through continued global expansion of the wholesale business, introduction of new product categories, and stand-alone retail stores in key U.S. and international locations. Rachel Roy will continue to lead the design, manufacturing and production of the brand. Additional terms of the transaction were not disclosed.

SOURCE Jones Apparel Group, Inc.