J. Crew to be acquired in $3 billion buyout
New York City — J. Crew Group on Tuesday agreed to be bought by two private-equity firms for about $3 billion. TPG Capital (a former owner of J. Crew) and Los Angeles-based Leonard Green & Partners will pay $43.50 a share in cash, according to a statement from the specialty retailer.
The purchase price is a 16% premium to the stock’s closing price of $37.65 Monday.
"We are in this for the long term and we do what we do day in and day out so we can deliver the best possible products to our customers," Millard ‘Mickey’ Drexler, who will remain J.Crew’s CEO, said in a statement. He added that working with the private equity firms "will enable us to invest in our future growth."
TPG was a previous owner of J. Crew, buying an 88% stake for about $500
million in 1997. The company later went public in 2006.
In other news, Crew said its third-quarter profit fell to $37.8 million, or 58 cents a share, from $43.9 million, or 67 cents a share, a year earlier. Sales rose 4% to $429.3 million, missing expectations. Same-store sales fell 1%.
JCPenney goes big for Cyber Monday
PLANO, Texas JCPenney announced that it will hold its biggest-ever Cyber Monday sale this year with discounts on more than 40,000 items. The company announced that its Cyber Monday specials will be available beginning on Sunday, Nov. 28 running through Monday, Nov. 29.
“As one of the largest apparel and home furnishing sites on the Internet, jcp.com offers a vast assortment of merchandise including styles, sizes and colors not available in stores,” said Tom Nealon, group executive vice president for JCPenney. “We know customers are increasingly shopping online, which is why we’re confident that jcp.com will be the shopping destination this Cyber Monday as customers discover our exciting promotions and great merchandise selection along with convenient features that make their online shopping experience easier than ever.”
On Cyber Monday, shoppers will find a dedicated “gift hub” on jcp.com, allowing them to easily search for gifts by price range, by person or category and also choose from a unique selection of novelty gift cards and e-gift card options, according to the company. JCPenney said it is also offering free shipping on online purchases of $25 or more from Nov. 24 through Nov. 30.
Nielsen releases Black Friday spending projections
SCHAUMBURG, Ill. Consumers shopping this Black Friday will spend in a “mindful manner,” according to a new Nielsen survey.
While 1-in-5 Americans confirmed they will shop on Black Friday, 61% of those surveyed said that they only planned to spend $100 to $500, and 60% of those surveyed will be armed with a shopping list. Other findings included:
- Of the 19% of Americans planning to shop Black Friday, 10% will be shopping Black Friday for the first time;
- More than three-quarters (76%) said Nielsen they will be shopping at department stores on Black Friday, while 55% will shop at supercenters/mass merchandiser stores and 52% will shop at electronics stores. Other Black Friday shopping locations include: toy stores (35%), online (23%), and dollar stores (22%); and
- The top buys on Black Friday will include apparel (64%), electronics (60%) and toys (47%).
“Consumers continue to closely plan their spending in this persistently difficult economic climate and for Black Friday that means shopping lists,” said James Russo,VP global consumer insights at Nielsen. “Consumers are increasingly savvy and know that retailers will continue to offer aggressive promotions as we work our way through this critical retail season.”
Nielsen surveyed more than 1,400 consumers, demographically and geographically representative of the total U.S. population.