J.Crew Group, Inc. appoints Vincent Zanna as CFO and Treasurer

NEW YORK, 2017-Aug-24 — /EPR Retail News/ — J.Crew Group, Inc. (the “Company”) today (Aug. 23, 2017) announced that Vincent Zanna, previously Senior Vice President of Finance and Treasurer, has been promoted to Chief Financial Officer and Treasurer, effective immediately. He will continue reporting to Michael J. Nicholson, President and Chief Operating Officer.

Mr. Nicholson commented, “I am pleased to announce the appointment of Vin to Chief Financial Officer and Treasurer. Vin has been an asset to the Company and an especially valuable partner since I joined the Company in January 2016. He has strong financial acumen and leadership skills that make him the perfect choice for this key role.  I look forward to continuing to partner with Vin in executing our transformation plan and strategically positioning the Company for long-term profitable growth.”

Mr. Zanna, 46, has served as the Company’s Senior Vice President of Finance and Treasurer since October 2016 and Vice President and Treasurer from 2012. Prior to joining the Company in 2009, he served as the Treasurer of Footstar, Inc.

About J.Crew Group, Inc.

J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of August 23, 2017, the Company operates 274 J.Crew retail stores, 119 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, and 182 factory stores (including 42 J.Crew Mercantile stores). Certain product, press release and SEC filing information concerning the Company are available at the Company’s website www.jcrew.com.

SOURCE: J.Crew Group, Inc.

J.Crew Group, Inc. closes private offer to holders of 7.75%/8.50% Senior PIK Toggle Notes due 2019

NEW YORK, 2017-Jul-15 — /EPR Retail News/ — J.Crew Group, Inc. (the “Company”) today (July 13, 2017) announced the closing of the previously announced private offer (the “Exchange Offer”) to holders of the $566.5 million aggregate principal amount of 7.75%/8.50% Senior PIK Toggle Notes due 2019 (the “Old Notes”) issued by Chinos Intermediate Holdings A, Inc. (the “Old Notes Issuer”), a direct wholly-owned subsidiary of Chinos Holdings, Inc., the ultimate parent of the Company (“Parent”).

Following acceptance in the Exchange Offer of 99.85% of the Old Notes, eligible note holders received:

  • $249,596,000 aggregate principal amount of 13% Senior Secured Notes due 2021 issued by J. Crew Brand, LLC and J. Crew Brand Corp. (the “Issuers”), both wholly-owned subsidiaries of the Company;
  • 189,688 shares of Parent’s 7% non-convertible perpetual preferred stock, series A, no par value per share, with an aggregate initial liquidation preference of $189,688,000; and
  • approximately 15% of Parent’s common equity, or 17,362,719 shares of Parent’s class A common stock, $0.00001 par value per share.

In addition, concurrently with the Exchange Offer, the Company announced completion of previously disclosed related transactions, including the following:

Term Loan Transactions.  Following receipt of requisite consents for approval by lenders holding approximately 88% of the outstanding principal amount of loans under the Company’s term loan agreement, the Company entered into the previously disclosed term loan amendment.  In connection with the term loan amendment, the Company purchased $150 million principal amount of term loans under the term loan agreement held by lenders who consented to the term loan amendment at par plus accrued interest. This repurchase was financed with additional borrowings under the term loan agreement of $30 million principal amount (at a 2% discount), as well as the issuance in a private placement of $97 million principal amount (at a 3% discount) of new 13% Senior Secured Notes due 2021 issued by the Issuers, the proceeds of which were loaned on a subordinated basis to the Company. The balance of the repurchase price of term loans was funded with cash resources of the Company.

As permitted by the term loan amendment, a Company subsidiary contributed to a subsidiary of the Issuers the remaining undivided 27.96% ownership interest of certain U.S. intellectual property rights not previously transferred. The intellectual property initially contributed and the remaining undivided interest contributed secure the $346.6 million principal amount of new notes issued by the Issuers in the Exchange Offer and the private placement, with the priorities previously disclosed.

The term loan amendment also includes a direction to the term loan administrative agent to dismiss, with prejudice, certain litigation relating to the assignment of the initial transferred intellection property (and related matters), which will be effected pursuant to an agreed stipulation.

Equity Recapitalization. A majority in interest of the current holders of Parent’s Class L Common Stock, par value $0.001 per share, including affiliates of TPG Capital, L.P. and Leonard Green & Partners, L.P. elected to convert all the outstanding shares of Class L Common Stock into (i) 110,000 shares of Parent’s 7% non-convertible perpetual preferred stock, Series B, no par value, with an initial liquidation preference of $1,000 per share ($110 million aggregate initial liquidation preference) that will be pari passu with the new Series A preferred stock issued in the Exchange Offer, and (ii) 95,350,555 shares of Parent’s Class A common stock.

In connection with the Recapitalization, the Principal Investors Stockholders’ Agreement, dated as of March 7, 2011, among Parent, the Old Notes Issuer, Chinos Intermediate Holdings B, Inc., an indirect wholly-owned subsidiary of Parent, the Company, the Sponsors and the other stockholders party thereto, was amended and restated to provide that the holders of the Class A common stock (including participants in the Exchange Offer) will be subject to certain rights and obligations as set forth in greater detail therein.

The Company intends to implement a new management incentive plan, pursuant to which it is expected that certain officers and employees of the Company will be entitled to receive equity awards of up to 10% of the Class A common stock outstanding after the Exchange Offer and up to $20 million in initial liquidation preference of additional new Series B preferred stock of Parent. The Class A common stock component of the new management incentive plan will dilute all holders of the Class A Common Stock. Any additional new Series B preferred stock will be in addition to the new Series B preferred stock issued in the Exchange Offer.

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, nor an offer to sell or a solicitation of an offer to purchase, any securities. The New Securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any other applicable securities laws and, unless so registered, the New Securities may not be offered, sold, pledged or otherwise transferred within the United States or to or for the account of any U.S. person, except pursuant to an exemption from the registration requirements thereof.  Accordingly, the New Securities were issued only (i) to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) and (ii) to non-“U.S. persons” who are outside the United States (as defined in Regulation S under the Securities Act). Non U.S.-persons may also be subject to additional eligibility criteria.

Cautionary Note Regarding Forward-Looking Statements

Certain statements herein, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events, and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including ongoing litigation, the Company’s substantial indebtedness and the indebtedness of its indirect parent, the retirement, repurchase or exchange of its indebtedness or the indebtedness of its indirect parent, its substantial lease obligations, its ability to anticipate and timely respond to changes in trends and consumer preferences, the strength of the global economy, declines in consumer spending or changes in seasonal consumer spending patterns, competitive market conditions, its ability to attract and retain key personnel,  its ability to successfully develop, launch and grow its newer concepts and execute on strategic initiatives, product offerings, sales channels and businesses, its ability to implement its growth strategy, material disruption to its information systems, its ability to implement its real estate strategy, adverse or unseasonable weather, interruptions in its foreign sourcing operations, and other factors which are set forth in the section entitled “Risk Factors” and elsewhere in the Offering Memorandum and in the Company’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q and in all filings with the SEC made subsequent to the filing of the Form 10-Q. Because of the factors described above and the inherent uncertainty of predicting future events, the Company cautions you against relying on forward-looking, whether as a result of new information, future events or otherwise.

About J.Crew Group, Inc.

J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of July 13, 2017, the Company operates 277 J.Crew retail stores, 118 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, and 179 factory stores (including 39 J.Crew Mercantile stores). Certain product, press release and SEC filing information concerning the Company are available at the Company’s website www.jcrew.com.

SOURCE: J.Crew Group, Inc.

J.Crew Group, Inc. appoints James Brett as Chief Executive Officer

NEW YORK, 2017-Jun-06 — /EPR Retail News/ — J.Crew Group, Inc. (the “Company”) announced today (June 5, 2017) that it has named James Brett as Chief Executive Officer. Brett, an executive with more than 25 years of retail experience, most recently served as President of specialty home furnishing company West Elm. Brett will assume the CEO position this July and will also join the Company’s Board of Directors. Millard Drexler will continue in his role as Chairman. Michael J. Nicholson will remain as President, Chief Operating Officer and Chief Financial Officer of J.Crew Group, Inc. and Libby Wadle will remain as President of Madewell.

“This is an exciting time for J.Crew as we continue to make significant changes to position our company for long-term success,” said Mr. Drexler. “As Chairman and an owner of the Company, it is my responsibility to focus on the future of J.Crew and find the right leadership to execute on our strategic plans.”

Drexler continued, “Jim has a proven track record of pushing for innovation and growing omni-channel brands. I look forward to moving into my new role and assist Jim and the team in every way possible to help ensure a smooth and successful transition.”

Brett stated, “I’m honored to work with J.Crew’s talented team of leaders, board of directors and Mickey, who have built an iconic American brand. J.Crew has tremendous opportunity to play a more meaningful role in our lives, and I look forward to leading it through its next phase of growth.”

Mr. Brett most recently served as President of West Elm, a member of the Williams-Sonoma, Inc. portfolio, since 2010, where he oversaw all aspects of the brand. During his tenure, Brett grew West Elm to become a $1 billion global brand. Prior to West Elm, Mr. Brett was the Chief Merchandising Officer for the Urban Outfitters Division of Urban Outfitters, Inc. He has also served in various merchandising roles at other retailers including Anthropologie, the J.C. Penney Company, Inc. and May Department Stores Company.

About J.Crew Group, Inc. 

J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of June 5, 2017 the Company operates 278 J.Crew retail stores, 116 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, and 178 factory stores (including 39 J.Crew Mercantile stores). Certain product, press release and SEC filing information concerning the Company are available at the Company’s website www.jcrew.com.

Certain statements herein are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending or preferences in apparel, the performance of the Company’s products within the prevailing retail environment, trade restrictions, political or financial instability in countries where the Company’s goods are manufactured, postal rate increases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company’s Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Margot Fooshee
J.Crew
Margot.Fooshee@jcrew.com
(212) 209-8414

SOURCE: J.Crew Group, Inc.

J.Crew Group, Inc. announces strategic reorganization

NEW YORK, 2017-Apr-26 — /EPR Retail News/ — J.Crew Group, Inc. (the “Company”) today (April 25, 2017) announced several strategic changes across its organization to better position the Company for sustainable and profitable growth.

“Today’s retail environment is changing more rapidly than ever before. Customers demand greater speed to market, convenience and personalized shopping experiences” said J.Crew Chairman and CEO Millard Drexler.  “At J.Crew, we are embracing this change and making necessary adjustments to our business and teams to move us forward in a more efficient and dynamic way.”

As a part of the strategic reorganization:

  • Michael J. Nicholson, President, Chief Operating Officer and Chief Financial Officer of J.Crew Group, Inc. will additionally assume responsibility for the J.Crew Brand which includes the planning and allocation, merchandising, marketing and design functions.  Mr. Nicholson joined J.Crew in 2016 and has been instrumental in directing and driving J.Crew’s strategic evolution.  Mr. Nicholson has extensive experience across all aspects of retail and will continue to optimize operational excellence while leveraging the power of the iconic J.Crew brand.  He will continue to report to Millard Drexler, Chairman and CEO.
  • Lisa Greenwald has been named Chief Merchandising Officer of the J.Crew Brand.  In her new role, Ms. Greenwald will oversee merchandising across J.Crew women’s, men’s, and crewcuts.  Ms. Greenwald joined J.Crew in 2004 and has held various positions of increasing responsibility in both the J.Crew and Madewell merchandising organizations.  Most recently, Ms. Greenwald served as  Senior Vice President of Merchandising for Madewell where she leveraged her proven merchandising skills to build and grow the business.  Ms. Greenwald will now report to Mr. Nicholson.
  • J.Crew also recently announced that Somsack Sikhounmuong was named Chief Design Officer, effective April 5, 2017.  In this role, he oversees the women’s, men’s and crewcuts’ design teams. Mr. Sikhounmuong has been with J.Crew since 2001, serving in various senior design roles, and from 2013-2015 he was Head of Design for Madewell where he was a key contributor to the brand’s success.  Mr. Sikhounmuong will now report to Mr. Nicholson.
  • Libby Wadle has been named President of the Madewell Brand.  Most recently, Ms. Wadle served as President of the J.Crew Brand and joined the Company in 2004. Throughout her tenure, Ms. Wadle has held senior management roles across multiple functions of the business, including J.Crew Factory and Madewell. Ms. Wadle will continue to report to Millard Drexler, Chairman and CEO and is well positioned to lead the Madewell team into its next phase of growth.

“We have an incredibly talented team of passionate leaders and will further leverage their strengths and talents as we continue to focus on making critical improvements in our business,” said Drexler.

Additional organizational changes are also being made across the Company reflecting J.Crew’s commitment to long-term profitable growth while, at the same time, creating a more efficient, nimble and streamlined team structure. As part of the reorganization, J.Crew announced today that the Company will initiate a headcount reduction comprised of approximately 150 full-time and 100 open positions, primarily from its corporate headquarters. The Company expects to realize approximately $30 million of annualized pre-tax savings in connection with this reduction in force and will record a charge of approximately $10 million in the first quarter of fiscal 2017 for severance payments and other termination costs.

Drexler concluded, “We take these difficult decisions very seriously, but believe they are absolutely necessary.  We are streamlining our teams  as we evolve our business and processes to cater to the new demands of the retail industry.  While challenging, we know what needs to be done and this is a critical step to position J.Crew for the future.  We are committed to treating impacted associates with respect and support through this period of change.”

About J.Crew Group, Inc.
J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of April 25, 2017 the Company operates 278 J.Crew retail stores, 115 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, the Madewell catalog, and 179 factory stores (including 39 J.Crew Mercantile stores). Certain product, press release and SEC filing information concerning the Company are available at the Company’s website www.jcrew.com.

Forward-Looking Statements:
Certain statements herein, including the expected benefits from organizational changes and the reduction in force, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events, and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the Company’s substantial indebtedness and the indebtedness of its indirect parent, the retirement, repurchase or exchange of its indebtedness or the indebtedness of its indirect parent, its substantial lease obligations, its ability to anticipate and timely respond to changes in trends and consumer preferences, the strength of the global economy, declines in consumer spending or changes in seasonal consumer spending patterns, competitive market conditions, its ability to attract and retain key personnel,  its ability to successfully develop, launch and grow its newer concepts and execute on strategic initiatives, product offerings, sales channels and businesses, its ability to implement its growth strategy, material disruption to its information systems, its ability to implement its real estate strategy, adverse or unseasonable weather, interruptions in its foreign sourcing operations, and other factors which are set forth in the section entitled “Risk Factors” and elsewhere in the Company’s Annual Report on Form 10-K and in all filings with the SEC made subsequent to the filing of the Form 10-K. Because of the factors described above and the inherent uncertainty of predicting future events, the Company cautions you against relying on forward-looking statements. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Allison Malkin
Integrated Corporate Relations
Email: 
Phone: 203.682.8200

SOURCE: J. Crew Group, Inc.

J.Crew Group, Inc. to hold 3Q FY2016 financial results conference call on November 22, 2016

New York, New York, 2016-Nov-19 — /EPR Retail News/ — J.Crew Group, Inc. today (November 17, 2016) announced that the Company will hold a conference call to discuss its third quarter fiscal year 2016 financial results on November 22, 2016 at 4:30 pm Eastern Time. The third quarter fiscal year 2016 results press release will be issued prior to the conference call.

Investors and analysts interested in listening to the conference call are invited to dial (877) 407-3982 approximately ten minutes prior to the start of the call. The conference call will also be simultaneously webcast at www.jcrew.com. A replay of the webcast will remain available for 90 days. A replay of the conference call will be available until 11:59 p.m. ET on November 29, 2016 and can be accessed by dialing (877) 870-5176 and entering conference ID number 13650049.

To access the third quarter fiscal year 2016 press release and SEC filings, including the Company’s third quarter fiscal 2016 Quarterly Report on Form 10-Q, please visit the investor relations section of the Company’s website at: www.jcrew.com.

About J.Crew Group, Inc. 

J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of November 17, 2016, the Company operates 287 J.Crew retail stores, 110 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, the Madewell catalog, and 178 factory stores (including 35 J.Crew Mercantile stores). Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company’s website http://www.jcrew.com/.

Certain statements herein are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual results of operation differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending or preferences in apparel, the performance of the Company’s products within the prevailing retail environment, trade restrictions, political or financial instability in countries where the Company’s goods are manufactured, postal rate increases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company’s Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Allison Malkin
Integrated Corporate Relations
Email: investorrelations@jcrew.com
Phone: 203.682.8200

Source: J.Crew Group, Inc.