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What: Shares of Jones Group (UNKNOWN:JNY.DL) were riding higher today, gaining as much as 16% on reports that the apparel-and-footwear seller may be seeking a buyer.
So what: The parent of Nine West and Jones New York has retained Citigroup to explore a possible sale, according to Reuters. Jones Group has been struggling, recently announcing that it will close about 170 underperforming stores in the next year and lay off 8% of its workforce. The retailer had also previously looked into selling itself in 2006 but couldn't find an interested party.
Now what: That record doesn't instill confidence in the company's appeal as an acquisition target. Factor in its shares' hitting a nearly three-year high on today's news, and the company seems even less desirable for a buyer. Sales have also flatlined as the brands have stagnated. Following the afternoon pop, shares cooled off to finish up 7.6%, but again, any gains from the report will only serve as a disincentive to a potential buyer. I wouldn't get my hopes up. To follow this developing story, all you need to do is add Jones Group to your Watchlist here.
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