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Chinos to spin off J Crew, to list as Madewell
Posted on Monday, 16 September 2019 10:21
Chinos Holdings, the holding company formed by TPG Capital and Leonard Green & Partners to take J Crew private for USD 2.78 billion in 2011, is reorganising its business model to list its Madewell brand domestically. The New York-based company has got the ball rolling by submitting documents for an initial public offering with a USD 100.00 million placeholder to the US Securities and Exchange Commission. Details, such as the size and price, are not yet known as the process is still in the early stages but, prior to completion, Chinos will change its corporate name to Madewell Group. Concurrently the holding company will carry out a series of transactions to spin off the J Crew brand to shareholders, meaning its only business following this reorganisation will be the Madewell brand of clothing. This fast-growing, premium denim label also sell items worn with jeans, such as t-shirts, jumpers, trainers and leather jackets. E-commerce sales represented 40.0 per cent and 37.0 per cent of Madewell’s direct to consumer revenue of USD 1.06 billion in the six months to 3rd August 2019 and of USD 2.35 billion in 12 months ended 2nd February 2018, respectively. Total turnover, which includes wholesale and other activities, amounted to USD 1.17 billion in H1 2019 and USD 2.48 billion in FY 2018. It widened net loss to USD 27.11 million in H1 2019 (H1 2018: loss of USD 1.84 million) and narrowed losses year-on-year to USD 67.78 million (FY 2017: loss of USD 71.71 million). Madewell has a broad digital ecosystem covering a fully mobile-responsive e-commerce website and social media channels to in-store screens and associate tablets and a membership program. The business operated 132 stores in the US, as of 3rd August 2019, most of which are located in upscale regional class A malls, lifestyle centres and street locations. © Zephus Ltd