J. Crew considers IPO for its successful sister Madewell

NEW YORK — Clothing retailer J. Crew Group Inc. says it's considering a potential initial public offering for its successful Madewell brand.

The announcement Thursday comes after the struggling company completed a review of the options for its business.

It says a Madewell IPO, if pursued, could be completed as early as the second half of this year.

Separately, it named Michael Nicholson, president and chief operating officer, interim CEO of J. Crew Group Inc. Retail veteran Mickey Drexler led J. Crew for more than a decade, helping it become a coveted fashion brand before it hit a multi-year sales slump. He severed his last ties with the company in January.

The news comes as some fashion companies are trying to capitalize on a burgeoning IPO market. Denim giant Levi Strauss & Co. returned to the public market in March as it stages a comeback even as it faces increasing competition and a changing retail landscape.

Some fashion companies are also looking to split up their businesses. Gap Inc. said in late February that it plans to split into two independent publicly traded companies — low-priced juggernaut Old Navy and a yet-to-be named company, which will consist of the iconic Gap brand, Banana Republic and the lesser known Athleta, Intermix and Hill City. Last year, VF Corp. said it will be splitting its denim business anchored by Lee and Wrangler jeans into an independently traded company.

J. Crew recently began to add a wider variety of styles as a way to turn around its business. Meanwhile, Madewell has done well with its classic, quality clothing. In its latest fiscal year ended Feb. 2, J. Crew sales fell 4% while Madewell's sales soared 26%.

You may also interested in

Self-driving cars go public; Uber offers rides in Pittsburgh

Aug 18, 2016

The option to hail a ride in a self-driving car will soon be available to Uber users in Pittsburgh

US stocks take small losses as energy companies slide

Aug 19, 2016

US stocks take small losses as the dollar regains a bit of strength and energy companies trade lower

Beer mega merger: what court ruling means for troubled deal

Aug 23, 2016

A British court has recommended that two classes of shareholders be created and vote separately on AB InBev's 79 billion pound ($104 billion) takeover of SABMiller

People also read these

Gap offers muted outlook for annual earnings, lower profit

Aug 18, 2016

Gap offers a downbeat annual profit outlook after reporting a 43 percent drop in net income for the second quarter

Republicans to query firms that ran Clinton's private server

Aug 23, 2016

Republicans are stepping up attacks on former Secretary of State Hillary Clinton's use of private email, alleging that foreign donors to the Democratic presidential nominee's family charity got preferential treatment from her department

Several tornadoes likely hit Indiana, Ohio; no bad injuries

Aug 25, 2016

Authorities say a wave of severe storms likely produced several tornadoes in Indiana and Ohio, damaging homes and businesses but causing no serious injuries

Emporium Post fulfils the need to know all things about consumers and how businesses can take this opportunity to reach their own customers.

Contact us: sales@emporiumpost.com

Join our mailing list now!