J Brand Up for Sale
Los Angeles premium-denim line J Brand has hired investment banker Morgan Stanley to sell the company or test the waters for an initial public offering.
The sale or stock offering would be the latest development in the denim company’s rising fortunes, which have seen it grow with revenues of more than $100 million.
“I know they did this book a few weeks ago and sent it out,” said one source, noting that a portfolio book—highlighting the company’s history, assets and business model—was sent out to prospective buyers.
According to published reports, those prospective buyers include the big apparel companies that buy up smaller clothing companies. One such company reportedly is VF Corp., which bought L.A. premium-denim brand 7 For All Mankind in 2007 for $775 million.
Other contenders are The Jones Group Inc., whose brands include Rachel Roy, Robert Rodriguez, Anne Klein New York, Joan & David and Jones New York. Hong Kong sourcing giant Li & Fung is also reported to be interested as well as the Kellwood Co.
Calls to J Brand Chief Executive Jeff Rudes, who co-founded the company in 2004, were not returned. He is vacationing in St. Tropez, France, with his family.
Sources close to J Brand noted that Star Avenue Capital, the Los Angeles–based private-equity group that purchased 60 percent of the denim label in 2010 for $85 million, was anxious to turn a profit. Star Avenue is a partnership incorporating Irving Place Capital and Creative Artists Agency.
Since Star Avenue’s purchase, J Brand has grown beyond its denim roots. This year it launched a lifestyle collection that is moving into upscale department stores, including Bergdorf Goodman, Neiman Marcus, Saks Fifth Avenue and Harrods.
J Brand’s line of premium jeans sells for between $165 to $268 in emporiums such as Nordstrom, Barneys New York and Bloomingdale’s.—D.B.
