J.Crew Is Looking at Separating Madewell -- WSJ
12 April 2019 - 5:02PM
Dow Jones News
By Khadeeja Safdar
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 12, 2019).
J.Crew Group Inc. said it is considering splitting off its
Madewell brand into a public company, separating the smaller but
faster-growing apparel chain from its preppy parent.
The retailer said it was conducting a strategic review of its
business and could complete an IPO of Madewell as soon as the
second half of 2019. Madewell, which was founded in 2006 by former
J.Crew CEO Millard "Mickey" Drexler, sells clothing targeting
younger shoppers.
Madewell sales rose 26% to $529 million last year, while sales
fell 4% at the J.Crew brand to $1.78 billion.
J.Crew, which is controlled by private-equity firms TPG and
Leonard Green & Partners, is carrying about $1.7 billion of
debt and has been struggling with slumping sales for several
years.
The plan to break up would follow a similar decision by rival
Gap Inc., which recently announced plans to split off its Old Navy
business into a separate public company.
J.Crew also said Thursday it had selected Michael Nicholson, its
president and chief operating officer, as interim chief executive.
His appointment follows the departure of CEO James Brett in
November.
Write to Khadeeja Safdar at khadeeja.safdar@wsj.com
(END) Dow Jones Newswires
April 12, 2019 02:47 ET (06:47 GMT)
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