Jones Apparel Group raises stake in GRI Group

Jones Apparel Group Inc. said Wednesday that it purchased an additional 15 percent stake in licensee GRI Group Ltd. for $15 million.

The transaction brings the apparel maker's total ownership interest in GRI to 25 percent.

Jones Apparel President and CEO Wesley R. Card said in a statement that the transaction emphasizes the company's commitment to broaden its Asian presence, where GRI acts as the exclusive licensee of some of its brands. GRI also licenses Jones' brands, which include Nine West, Jones New York and Anne Klein, in Europe.

"We believe that Asia remains a high growth region and the Asian consumer continues to respond positively to our footwear and accessory brands," Card said.

In April the company said it would close 225 stores in order to cut costs. It also announced 185 job cuts in January and said that more cuts were likely to follow.

Jones, like many of its rivals, including Liz Claiborne Inc. and VF Corp., has struggled during the recession as major stores have cut back on inventory amid the ongoing consumer spending pullback.

Shares of Jones Apparel Group added 35 cents, or 3.5 percent, to $10.25 in afternoon trading. Over the past year, the stock has traded in a range of $2.34 to $22.12.