Jones in joint venture on luxury label Rachel Roy
NEW YORK (Reuters) – Jones Apparel Group Inc. has formed a joint venture to develop, market and license the fashion brand Rachel Roy, and has a 50 percent stake in the venture, Jones said on Thursday.
The up and coming luxury fashion brand, based in New York, is named after its creator, Rachel Roy, who is married to music mogul Damon Dash.
The remaining 50 percent interest in the joint venture will be owned by Roy, Dash and TSM Capital LLC, an investment firm that has a minority stake in Roy's business. TSM specializes in fashion brands that are just taking off.
Additional financial terms of the joint venture were not disclosed.
In a statement, Wesley Card, Jones' chief executive officer, said, “We see tremendous opportunity in Rachel Roy as a designer and brand.”
Roy launched her label in spring 2005 and currently sells her line at high-end and specialty stores such as Bergdorf Goodman, Neiman Marcus, Nordstrom and Saks. She also sells her collection in countries including the UK, Turkey and Kuwait.
Through the joint venture, Jones will take over operations of the existing designer collection business under license.
Jones said it plans to develop the brand through sustained global expansion of the wholesale business, new products and stand-alone retail shops in the United States and internationally.
Roy and her team will work with Susan Metzger, CEO of Jones' women's wholesale sportswear unit, the company said.