Jones Group to Cut 8 Percent of Staff and Close 170 Stores

Shares of the company rose 2.7 percent to $13.97 on the New York Stock Exchange after it announced the cuts, which it said would cost it about $40 million to $60 million over the next 15 months.

Jones' U.S. stores have struggled in the face of aggressive competition. Sales during the all-important holiday season fell about 7 percent.

Earlier this year, activist hedge fund firm Barington Capital Group, run by James Mitarotonda, met with Jones Group management and suggested the company cut expenses and focus on its most successful brands, while possibly selling other brands.

In the past, Barington has invested in several retailers, including Dillard's Inc and Warnaco, and pushed for operational and strategic changes. PVH Corp acquired Warnaco in February.

"Barington has been pushing for an in-depth review of the Jones brands and even a culling of some brands," said Damien Park, managing partner at Hedge Fund Solutions, a research and consulting firm focused on shareholder activism. "That was missing in today's announcement."

Barington typically seeks a seat on the boards of many companies in which it invests, Park added.

"Given their past record, it's highly likely they won't rest until they get board representation," he said.

A representative at Barington declined to comment. A Jones Group spokeswoman confirmed that the company met with Barington but declined to comment further.

Jones Group shares are up 23 percent so far this year.

The company estimated first-quarter adjusted earnings of about 15 cents per share, shy of Wall Street expectations for a profit of 25 cents a share. It estimated first-quarter revenue at about $1 billion.

First-quarter gross margins are estimated to fall 90 basis points below the company's own forecasts as a highly promotional environment and an unusually cold weather hurt sales.

Jones said it will cut U.S. retail staff by about 18 percent and corporate, support and supply chain staff by about 2 percent.

The company said upon completion of the restructuring plan, it expects outlet stores comprising a significantly higher percentage of its overall retail locations.

The company is now betting on its wholesale division, where sales to chains like Macy's Inc and Nordstrom Inc contribute about half its revenue.

Jones said it will streamline the wholesale business to focus more on sportswear and also consolidate some distribution and supply chain facilities.

The restructuring is already underway and includes 50 store closures announced in the fourth quarter of 2012, Jones said.

Jones had a total of 594 domestic retail stores at the end of 2012, which include 409 outlet stores. The company had about 6,250 full-time employees and about 5,540 part-time employees as of December 31, according to a regulatory filing.

(Reporting by Siddharth Cavale in Bangalore; Editing by Rodney Joyce, Supriya Kurane and David Gregorio)

Jones Day Targets India With London Hire

Jones Day has added an India practice partner to its London office.

Sumesh Sawhney was previously a partner at Clifford Chance, where he was co-head of that firm's India corporate group.

Sawhney's practice has focused on India-related mergers and acquisitions, joint ventures and cross-border investment. Previous clients for India deals include Bayer and Malaysia's Maxis Communications Bhd.

Between 1992 and 2000, Sawhney worked in-house for Indian conglomerates Thapar Group and the Escorts Group of Cos. In 2003, he joined Amarchand & Mangaldas & Suresh A. Shroff & Co. as a partner and moved to Clifford Chance as an associate three years later. He became a partner at the British firm in 2010.

Jones Day Brings On Gide Loyrette Team as Firm Continues Europe Push

Jones Day has secured a boost for its Paris office with the hire of a five-strong Gide Loyrette Nouel finance team led by derivatives heavyweight Alban Caillemer du Ferrage.

Caillemer du Ferrage, who was head of derivatives and market infrastructure at Gide before joining Jones Day Monday, is considered one of the top derivatives advisers in the French legal market.

He specializes in regulatory, structuring and collateral issues relating to OTC derivatives and structured repos and advises on clearing, repository and disclosure matters. The derivatives specialist -- who is top-ranked for derivatives by Chambers and Partners -- is the International Swaps and Derivatives Association counsel for France has worked with clients including independent clearing house LCH Clearnet.

He is joined at Jones Day by of counsel Qian Hu, counsel Karole-Anne Sauvet, and associates Clement Saudo and Mathilde Nicand.

The team will work closely with lawyers in London led by banking and finance co-chair Edward Nalbantian, and the New York team led by Jayant Tambe, co-head of the firm's financial institutions, litigation and regulation practice.

Nalbantian commented: "With experience in matters related to both disputes and transactions, they provide a perspective that will be of immense value to all our clients whether financial institutions, funds or end-users."

The hires come amid an expansive period for Jones Day's European practice. Earlier this year, the U.S.-based giant grew its litigation and arbitration practice with the addition of Paris partner Jean-Pierre Harb from Baker & McKenzie.

Jones Day also earlier this year set up its third German office in Duesseldorf and confirmed plans to launch in Amsterdam in early 2013. The firm also expanded its City litigation practice in the summer with the hire of Christopher Braithwaite and Baiju Vasani from Simmons & Simmons and Crowell & Moring, respectively.

Jones Day Follows Duesseldorf Opening With Amsterdam Launch Plans

Jones Day is set to expand its European footprint with the launch of an Amsterdam office in early 2013.

The new base, which will initially concentrate on corporate and M&A, private equity, capital markets, litigation and antitrust, will be led by Luc Houben, who had previously held the role of partner-in-charge at the U.S. firm's Brussels office.

Houben, who has been at Jones Day for more than 20 years, has also practiced in New York and Tokyo and is currently involved in the firm's Japan practice.

The Amsterdam plans follow on from the opening of the firm's third German office in Duesseldorf in February.

Jones Day managing partner Steve Brogan commented: "The opening of our Amsterdam office, together with the recent addition of our Duesseldorf office, is a demonstration of Jones Day's confidence in and commitment to the future of the European Union, which remains the largest economy in the world."

Separately, the firm has strengthened its London corporate practice with the hire of partner Ferdinand Mason from leading Dutch firm Boekel de Neree.

Mason, who has been a partner at Boekel since 2000 and helped launch the firm's London office in 2010, is joined at Jones Day by Boekel senior associate Bastiaan Kout. Both started at the firm Monday, with Mason's hire taking the number of corporate partners in the office to 23.

Jones Day partner-in-charge for Europe and the Middle East Mary Ellen Powers noted: "Mason will play an essential role in the development of our new Amsterdam office and in the service of Dutch clients worldwide."

Jones Day Follows Duesseldorf Opening With Amsterdam Launch Plans

Jones Day is set to expand its European footprint with the launch of an Amsterdam office in early 2013.

The new base, which will initially concentrate on corporate and M&A, private equity, capital markets, litigation and antitrust, will be led by Luc Houben, who had previously held the role of partner-in-charge at the U.S. firm's Brussels office.

Houben, who has been at Jones Day for more than 20 years, has also practiced in New York and Tokyo and is currently involved in the firm's Japan practice.

The Amsterdam plans follow on from the opening of the firm's third German office in Duesseldorf in February.

Jones Day managing partner Steve Brogan commented: "The opening of our Amsterdam office, together with the recent addition of our Duesseldorf office, is a demonstration of Jones Day's confidence in and commitment to the future of the European Union, which remains the largest economy in the world."

Separately, the firm has strengthened its London corporate practice with the hire of partner Ferdinand Mason from leading Dutch firm Boekel de Neree.

Mason, who has been a partner at Boekel since 2000 and helped launch the firm's London office in 2010, is joined at Jones Day by Boekel senior associate Bastiaan Kout. Both started at the firm Monday, with Mason's hire taking the number of corporate partners in the office to 23.

Jones Day partner-in-charge for Europe and the Middle East Mary Ellen Powers noted: "Mason will play an essential role in the development of our new Amsterdam office and in the service of Dutch clients worldwide."