Quincy, Mass. – J. Jill is reportedly in the process of hiring bankers to assist in a possible sale of the company. According to the Wall Street Journal, sources indicate that co-owners Golden Gate Capital and Arcapita Bank could receive as much as $500 million in a sale of the specialty chain.
The $500 million figure is based on J. Jill’s reported $60 million in earnings before interest, taxes, depreciation and amortization (EBITDA). Retailers are typically valued at eight times EBITDA for a sale. Golden Gate also recently agreed to sell Eddie Bauer to Jos. A. Bank and is a major shareholder in Zale Corp., which Signet Jewelers has agreed to purchase for $1 billion.