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Home / Business / J.Crews & # 39; Crown Jewel & # 39; Madewell files the S-1 for an IPO

J.Crews & # 39; Crown Jewel & # 39; Madewell files the S-1 for an IPO



Madewell has applied for disclosure, a process that would split the company from J.Crew.

On Friday, Madewell's parent company filed with Chinos Holdings, Inc. for an initial public offering.

Earlier this year, J.Crew announced plans to explore an IPO of the Madewell division. Currently, Chinos Holdings is divided into the business of Madewell and J.Crew, with Madewell accounting for approximately 20% of the company's business.

"In some ways, we want to continue as we have – to grow organically and authentically, with our customers at the center of every decision we make," says Libby Wadle, CEO of the filing.

"But we will also focus on significant growth through new opportunities, including driving greater growth in e-commerce, expanding our product range and further developing our membership program, "continued Wadle.

The filing cites risk factors including the possibility of a bankruptcy filing from J.Crew, negative social media records and waning About half of the Madewell locations are currently located in malls.

"While J.Crew continues to struggle, Madewell has emerged as the company's crown jewel and accounts for most of its profits," said Raya Sokolyanska, vice president of senior analyst at Moody & # 39; s, in an email comment Friday.

"The IPO could gain significant appreciation and help pay down a meaningful wool portion of the more than $ 1

.7 billion in debt, but the ultimate ability to address J.Crew's highly leveraged capital structure depends on the public market's susceptibility to clothing retailers and the company's operating profit, "Sokolyanska added.


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