Jones Apparel possibly for sale

US-based Jones Apparel Group said that it is contemplating selling the entire company. In a statement, the group said that, contrary to recent reports, it was not considering the "divestiture of any of its businesses or divisions". The group owns brands such as Jones New York, Gloria Vanderbilt and Anne Klein and operates retailers Nine West and Barneys New York.

Jones has suffered falling sales for two consecutive years and a further decline in sales looms as its biggest customer, Federated Department Stores, has reduced orders from apparel makers. Federated, which owns Macy's and Bloomingdale's, united with May Department Stores and launched its own label brands.

Last year the group realized sales of $1.5 billion (£857 million) and had a market capitalisation of $4 billion. In January, the company announced a rise of 63 percent in fourth quarter profits, thanks largely to strong sales at its Barneys chain. Jones acquired the luxury department store chain in 2004 for approximately $400 million.

In February, the group sold its Polo Jeans license back to Polo Ralph Lauren. Investment bank Goldman Sachs has been hired as a financial adviser.