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09/16/2019

J. Crew to spin off Madewell

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J. Crew Group’s fast-growing Madewell brand is splitting from its struggling parent company.

The company said that Chinos Holdings, its subsidiary, will be renamed Madewell before its initial public offering. It did not disclose the number of shares to be offered or the target price range. The retailer said it plans to use the proceeds of the IPO “to repay indebtedness and for general corporate purposes.”

J. Crew launched Madewell in 2006 as a separate, more casual and denim-based brand. Its sales have soared in recent years as J. Crew has struggled to turn around its sagging sales.

Madewell, which currently has 133 stores across the U.S., reported $614 million in 2018 revenue, according to the filing.