After months of struggle, J.Crew’s public shareholders succumbed to CEO Mickey Drexler’s offer, allowing the company to be taken private by TPG Capital and Leonard Green for $43.50 a share, or about $3 billion. They deal will close by March 7, according to Bloomberg.
That means J.Crew will no longer be a public company. You won’t be able to buy J.Crew stock, and the information that the retailer reveals about its financials will be less detailed, at least until its ready to go public again.
This is great news, both for the shareholders and the company. Why? Well, despite its lead in the specialty retail market, J.Crew has struggled a bit as of late in the women’s department. Although it’s not entirely clear why. It could be for a million reasons: it might have to do with devotees being off-put by “Collection” prices ($400 blazers, $600 dresses); it might have to do with merchandising, it might have to do with over-expansion.
Whatever the problem, it will be easier for Drexler and co. to take care of it behind closed doors. That’s the tricky thing about retail stocks. Stores go in and out of fashion like trends, but shareholders are rarely patient enough to understand that. Those who own stock of J.Crew are most certainly getting the most for their money because of the buyout. And J.Crew will be able to fix its internal problems without resorting to financial strategies that could change the store we all know and love so much way too drastically.