- Crew’s top priority is to return its leading brand to profitability and retain the momentum for the fast growing apparel business of Madewell
- Crew, an American multi-brand, multi-channel, and specialty retailer has announced recently that it is planning to explore a potential initial public offering (IPO) for its rapidly growing brand Madewell.
- Crew further mentioned that the move is a part of its initiative to position both the Madewell and J. Crew brands for long-term growth as well as strengthen and deleverage the Company’s balance sheet.
Seemingly, this year J. Crew’s top priority is to return its leading brand to profitability and retain the momentum for the fast growing apparel business of Madewell.
President and Chief Operating Officer of Madewell, Michael J. Nicholson, has been named as the Interim Chief Executive Officer of the company.
Nicholson said in a statement that Madewell had another year of record performance in 2018 and a potential IPO could generate meaningful proceeds that would strengthen the balance sheet of the company, besides increasing overall financial flexibility, to address its 2021 debt maturities.
Sources familiar with the matter informed that Jack Weingart, TPG Capital’s co-managing partner, was named to board of J. Crew by replacing Carrie Wheeler, who will be moving away from the board after eight years with the company.
- Crew is in talks with financial and legal advisors for actively exploring strategic options to maximize the value of the company, sources confirmed, including a potential IPO of its Madewell business, which if continued, could be completed in the second half of 2019.
Apparently, J. Crew had appointed restructuring lawyers for the second time for exploring their options to rework its billions in debt, as the company is struggling with its falling sales and declining cash reserves.
The company also faces tough competition in the retail sector, from the increase of more casual athleisure attires to e-commerce firms like Amazon that have troubled a wide range of traditional retailers.