NEW YORK (The Deal) -- Sycamore Partners, the New York-based private equity firm, is putting upscale footwear retailer Stuart Weitzman on the auction block, confirmed a source familiar with the matter.
Reuters reported the potential sale earlier on Monday, August 18.
Sycamore hired Goldman Sachs (GS - Get Report) and Citigroup (C - Get Report) to run the auction, the source confirmed. As the bankers have just been mandated, the process is still in its early stages, but books will be sent to both strategics and private equity firms, the source said.
When Jones Group bought the 45% of Stuart Weitzman it didn't own in 2012 for almost $250 million, the deal gave the unit a valuation of about $550 million. Jones Group bought an initial 55% stake in the footwear company for $180 million in 2010, valuing the entire entity at the time at nearly $330 million.
Sycamore declined to comment on the situation. The PE firm took on Stuart Weitzman as part of a larger deal to acquire Jones Group for $2.2 billion, a transaction that closed earlier this year in April, but was announced on Dec. 19. After the deal closed Sycamore announced it was spinning Stuart Weitzman off as a separate company.