Apparel Online India Magazine May 1-15, 2019 | Page 12

RETAIL CURRENT APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ J.Crew eyeing IPO for its Madewell biz; reshuffles management J.Crew Group is actively exploring a potential Initial Public Offering (IPO) for its Madewell business. The company also mentioned that if pursued, then the IPO could be completed as early as the second half of 2019. For the same, the company is also consulting with its legal and financial advisors. J.Crew believes that an IPO will maximise the value and position, both for J.Crew and Madewell brands for long-term growth and deleverage as well as strengthen the company’s balance sheet. The clothing company’s top priority this year is to return its flagship brand to profitability and sustain momentum for its quickly growing Madewell apparel business. According to a Reuters report, the company carries a debt load exceeding US $ 1.7 billion and is currently not looking at the bankruptcy option. In a separate announcement, Michael J. Nicholson, President & COO, has been named Interim CEO of J.Crew Group, effective immediately. Additionally, Jack Weingart, Co-Managing Partner of TPG Capital, has been appointed to the company’s Board of Directors, replacing Carrie Wheeler, who will be transitioning off the Board after eight years with the company. Michael’s appointment replaces the office of the CEO, previously comprised of four executives, which has led the company since November 2018. “I look forward to working with the Board of Directors and our team to build on the decisive actions we have taken to date to refocus our strategy and improve performance in 2019 with the goal of returning J.Crew to profitability, while working with Libby to continue the strong growth at Madewell,” commented Michael. “We believe a potential IPO of Madewell, which had another record year of performance in 2018, could unlock significant value and generate meaningful proceeds that would strengthen our balance sheet and increase our overall financial flexibility to address our 2021 debt maturities, giving us an improved platform to support J.Crew’s turnaround and allowing Madewell to achieve its full potential over the long-term,” he added. Libby Wadle will continue as President & CEO of Madewell and Lynda Markoe will continue as the Chief Administrative Officer of the company. Both Michael and Libby will report to the Board of Directors. At the same time, Adam Brotman, President & CEO, has decided to resign from his position for personal reasons. Macy's goes all out for consumer engagement; adds ‘Story' to 36 stores A year after buying Story, a New York-based retail store founded by Rachel Shechtman, Macy’s is planning to bring the retail concept to life in 36 stores in 15 states including its Manhatttan flagship. The Story concept curates merchandise around a theme or set of ideas and rotates every two months. Macy’s is trying to rethink how to excite shoppers in a better way who are increasingly going online. “Story gives new customers a fresh reason to visit our stores and gives the current Macy’s customer even more reason to come back again and again throughout the year,” CEO Jeff Gennette said. Macy’s first Story, called Color, will be up until June 26 at which point a new theme will be rolled out. The new store is anchored by three big brands: MAC Cosmetics, crayon 12 Apparel Online India | maker Crayola and jeans giant Levi Strauss & Co. But the shop, awash in bright colours, features items from roughly 70 small businesses like brightly coloured T-shirts, books, colourful dishes, candles and candy. At Macy’s Herald Square, Story will span more than 7,500 square MAY 1-15, 2019 | www.apparelresources.com feet, about 3½ times bigger than in other cities, which will allow it to include interactive experiences like a massive Lite-Brite light-up display, a ping-pong table and plenty of other ‘Instagramable moments’. The firm has trained more than 270 people to staff the 36 Story shops. “Think about a magazine or digital media company. Our version of editorial is merchandise curation… and event programming. One thing that was important, and that we learned over the years at Story, is to create a model that is relevant. We are doing something that will appeal to 5-year-old and to the 40-50-year-old too.” – Rachel Shechtman, Brand Experience Officer, Macy’s