J. Crew may be anticipating a major transition as rumors circle about the company selling their sibling brand Madewell.
The pending decision is due to the sliding sales that the U.S. clothing company has suffered in past quarters. A plan to reconstruct J. Crew involves working with investment bank Lazard Ltd. to reassess branding and compose a strategy to potentially separate itself from Madewell.
Madewell, launched in 2006, has been an ultimate success for J. Crew. With their artsy aesthetic and their modern take on classic all-American style, the brand has grasped the interest of young retail shoppers, something J.Crew has failed to do as of late. The hope is that with the separation of the two brands private owners will gain value, according to one source.
However, the decision can come with some backlash for the company as it may cause conflict with creditors, stripping the brand of its fast-growing segment.
J. Crew is currently making efforts to reinvent their brand and appeal more to the millennials audience even partnering with New Balance to create their first athletic wear collection which launched this fall.