By Richard Collings

Published: September 23, 2009

   J Brand, the private Los Angeles-based denim company that has recently teamed with renowned designer Hussein Chalayan, is likely up for sale, said industry sources.

   The company is thought to be represented by investment bank Sage Group out of its Los Angeles office, also according to sources.

   Sage Group declined to comment on whether it is representing the company in an auction.

   An executive at the company could not be reached for comment.
   The company could have revenues between $50 million to $100 million.

   An industry executive said that a sale of J Brand would be irrelevant as to other high-end denim brands’ plans to pursue liquidity events and indicated that it was not likely to immediately lead to other deals in the space.
   An industry source said that now could be ideal for such companies to pursue a deal, as they have made it through the financial crisis and a transaction would provide cash, primarily for advertising or marketing.
   The source said a couple of private equity firms have already passed on the deal, but added that the company was likely too small to attract a strategic acquirer, and more likely to attract private equity.
    The industry executive agreed that it was less likely that a strategic player would purchase the business, also pointing to a private equity deal.

   The denim brand is carried by retailers such as Barneys, Bloomingdale’s, Neiman Marcus, Nordstrom and Saks Fifth Avenue, as well as other specialty retailers and boutiques.

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