J.Crew CEO Mickey Drexler is working with two investment firms to take the company private, according to the New York Times‘ blog DealBook.
This means that if the deal does indeed go through, J.Crew will be removed from the stock market and all public shareholders will be bought out.
Generally, with buyouts like this, the idea is to fix the business out of public scrutiny. And eventually either sell it to someone else or take it public again.
Why might J.Crew want to do this if it’s thought as the leading specialty retailer in the US, if not the world? We shop there, you shop there–who doesn’t think it’s a brilliant store?
Well, despite a transformation in recent years, thanks to Drexler and protege Jenna Lyons, sales have been slower in 2010, dropping for the last two fiscal quarters. Separately, we’ve heard from sources within the company that while men’s sales have continued to rise at a rapid pace, women’s have been stunted as of late.
What does this mean for your shopping experience? Probably not much. Most of the changes will go on behind the scenes.
Yet it’s still a risky move. J.Crew will be saddled with debt that could take years to pay back. However, TPG, one of the investment firms involved in the buyout, is a former owner of J.Crew. They also have a major stake in Neiman Marcus, one of the few successful department stores operating today.
We’ll find out more tomorrow when the company reports its latest quarterly results, which are expected to be up a bit.
Tags: J. Crew, Jenna Lyons, Mickey Drexler
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They just may need to “Build a new Crew” – from the outside in.
While we all love their lookbooks, they’ve pretty much had the same individual pieces for a few years now, just varied over time. And using Michelle Obama as their unofficial ambassador may be backfiring now with the political climate (although I think she’s a great inspiration and stylish, just not a style that I aspire to per se). I find JCrew’s women success lies in their styling, not their actual pieces.
Also, with the new trend toward minimalism (Celine et al.), JCrew may find their eclectic approach to be no longer on target. Frankly, I have a renewed love for Theory.
You are so right. There’s so much you can do with a sequined cardigan and military pants.
I think the hype over Jenna Lyons was extremely overrated and now the honeymoon is over.
I, too, am very excited over the new Theoryskens but there’s nothing for guys.
http://3.bp.blogspot.com/_GNXSgP5CpGc/TJZiK0ufouI/AAAAAAAAAY0/AsiFdsBMk4U/s1600/theory.bmp
Even though their men’s sales are rising, J.Crew is still one of those stores where any fashionable man could immediately notice that they put more work into their woman’s line, and aren’t really trying to draw a serious male customer, beyond the girlfriend or husband of their female customer.
Even though their men’s sales are rising, J.Crew is still one of those stores where any fashionable man could immediately notice that they put more work into their woman’s line, and aren’t really trying to draw a serious male customer, beyond the girlfriend or husband of their female customer.
Those are some really good points. I think they tried to fool the guys in believing that they are giving attention to men by putting up that one location on Broadway/Broome and the other Tribeca location but the merchandise is still boring and I don’t see any added value in proportion to the price. They even try to hype it up by having very expensive vintage pieces
I’ve never been inside Zara and I only know about it because Britt is a big fan and most of my gay guy friends talk about it. From the pieces that I’ve seen, I still find it more European/designer than conservative.
Your boxy/conservative, fitted/embellished example is very telling of the paradox that happens in this country when it comes to menswear. Ralph Lauren was very smart in putting out the Blue/Black/Purple labels to cover all bases.
I remember being in college and everyone got J. Crew catalogs in their mail. I was excited to thumb through to see which worsted wool roll neck sweater I was going to get this season or that season.
Since then, I have watched J.Crew try to change into something that it’s not. I’m all for being fresh/new and moving forward with the brand but don’t change the DNA.
You’re right, Zara is still much closer to euro-fashionability than American conservative male aesthetic, but alongside their fashionable Burberry knock-off peacoats, there are well made plain issue ones, and they make an incredible array of fashionable, plain loafers (stylish men’s shoes are the hardest thing to find in lower end retailers, I find.) Their their sweaters and pants wouldn’t look out of place on the most conservative straight men I know (who, admittedly, are still probably not among the most conservative dressers out there.) You should check out the site! Walking into the store here is so depressing, because I feel like I should be able to afford the things I want there but I want so much of it that it’s overwhelming.
You are so right. There’s so much you can do with a sequined cardigan and military pants.
I think the hype over Jenna Lyons was extremely overrated and now the honeymoon is over.
I, too, am very excited over the new Theoryskens but there’s nothing for guys.
http://3.bp.blogspot.com/_GNXSgP5CpGc/TJZiK0ufouI/AAAAAAAAAY0/AsiFdsBMk4U/s1600/theory.bmp
I agree with the posts above — I think that J crew has excellent basics — like suiting and so forth, but I often recoil from buying their blouses because there are so many sequins and flounces that it seems like too much. Also, too many things have no sleeves, even for their winter stuff.
The other thing is that I think they have made their prices higher without a commensurate increase in quality — their shirts are usually very thin, and their cashmere pills.
I think their women’s aesthetic is often too prim, but I think that’s on the way out at J Crew. I imagine Jenna Lyons is savvy enough to be loving Phoebe Philo, and we’ll probably be seeing more Chloe and Celine simplicity in their fall line (presuming it is shown in early Spring, like everyone else’.)
I did notice some cleaner line in the latest presentation which I saw here on Fashionista, maybe less so in the cut of the clothes, but there were a lot of colors that felt new and bold, and had very little cutesy kitschy feel. I think that was smart.
I have this strange feeling that J. Crew is going to soon make their own lines very minimal in their own stores. They’re going to sell other lines (Levi’s, and other american brands) and tightly tailor their own lines into a small selection. It’s very easy to walk into a J. Crew and be distracted by other brands, like their large amount of Belstaff, Filson, Levi’s, and other brands.
I think Ms. Lyons and Mr. Drexler are genius and have made shopping fun again. I still buy my Belgian and Japanese favorites each season but use JC as a go to for basics and fill ins in both the women’s and men’s departments.