J. Crew losses increase up to 19.9 million dollars and Madewell prepares to go public
The American group expects to reduce debt of 1.7 billion dollars with its plan to spin off its fast-growing Madewell brand into a separate public company.
J. Crew losses deepen. The American fashion group reported that its net losses for the third quarter grew to 19.9 million dollars compared to 5.7 million dollars in the third quarter last year. Meawhile, the company plans to turn spin off Madewell into a separate public company.
J. Crew sales decreased 4% to 415.8 million dollars while revenues reflect net closure of 41 stores in the last twelve months. Along the same lines, operating income was 11.5 million dollars compared to 32.7 million dollars in the third quarter last year.
On the other hand, the Madewell initial public offering plan is expected to reduce a great portion of the group’s 1.7 billion dollars in debt and shore up J. Crew so it can rebound. The company reached an agreement on separating J. Crew and Madewell into two separate companies and has until March 18 to take Madewell public.
Michael J. Nicholson, president and chief operating officer of the group, stated: “We expect both J. Crew and Madewell to have sustainable capital structures and to deliver enhanced value for our stakeholders.”
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