J. Crew Inks Sale For $3 Billion

Retailer J. Crew has reached an agreement to sell the company to alternative investment house TPG Capital and Leonard Green & Partners in a deal reportedly valued at about $3 billion, according to Bloomberg. J. Crew, which in recent years launched brands including Madewell, Crew Cuts and its bridal line, is run by CEO Millard Drexler. According to Bloomberg, Drexler will work with the two firms as he is reportedly considering taking the company private. The retailer is dealing with changing consumer tastes and inventory problems, according to Nathan Brown, an analyst at J. Crew Shareholder Waddell & Reed Financial.

He added that the numbers for the next few quarters could be “somewhat sloppy,” as “the wrong stuff” is plentiful and still coming in. In January, J. Crew reported sales of $1.58 billion in the year through January, double its revenue seven years prior, when Drexler took the reins.

This deal follows many other PE-retail deals, including Bain Capital‘s recent acquisition of children’s clothing store company Gymboree and Apollo Global Management‘s acquisition of Claire’s Stores.