Barneys New York Bought by Jones Apparel Group
New York City, Jones Apparel Group, Inc. will spend roughly $400 million to purchase Barneys New York, which operates stores in 21 locations, including New York City, Beverly Hills and Chicago. The deal is comprised of roughly $294 million in stock and $106 million in debt. Both companies’ boards of directors have approved the deal.
Howard Socol will continue as chairman, chief executive and president of Barneys, which will operate as a stand-alone company. For the 12 months ended July 31, the luxury apparel and accessories chain reported sales of $444.2 million and operating income of $32.8 million. The deal also will give Jones entrance into the luxury market and increase its retail holdings. According to Peter Boneparth, chief executive and president of Jones, retail will comprise 24% of its projected 2005 net revenue, up from 17%. In addition, sales distributed through the specialty retail channel will comprise 28%, up from 21%.
Food Lion Buys Handful of Winn-Dixie Stores
Salisbury, N.C., Supermarket chain Food Lion is spending an undisclosed sum in cash to acquire 10 stores from Winn-Dixie in North Carolina and Virginia. The acquisition will fill in and reinforce the retailer’s presence in its current geographic footprint. The stores are located in Dunn, Elizabeth City, Elizabethtown and Havelock, N.C., and Clarksville, Danville, Farmville, Martinsville, South Hill and Stanleytown, Va.
Food Lion plans to quickly rebrand five of the stores in Virginia with only a few-days gap in store operations. Also, the store in Elizabethtown will be remodeled significantly to replace Food Lion’s current location there. It says it will conduct further analysis of the remaining locations to better determine how the stores fit in its growth plans. Food Lion, which operates more than 1,200 stores in 11 Southeastern and mid-Atlantic states, is a division of Delhaize America, which also operates the Hannaford Bros. and Kash ’n Karry grocers.
Sport Chalet Adding Two Stores in California
Los Angeles, Specialty retailer Sport Chalet, Inc. will open two stores in The Golden State later this month, in Elk Grove and Visalia. Both stores, which average 42,000 sq. ft., feature an on-site SCUBA training pool.