J.Crew Faces Post-Bankruptcy Style Balancing Act Between Past and Present

As the fashion industry continues to try to find its footing in a time when budget-conscious consumers are going out more amid the ebbing pandemic, J.Crew finds itself at a similar crossroads.

The company, said J.Crew chief executive Libby Wadle in an interview with The Wall Street Journal, is “one of a few great American brands. I think we sort of lost that along the way.”

Wadle, who has almost 20 years of experience with J.Crew, became the company’s third CEO in three years in November 2020. She’s also the CEO of J.Crew’s sister company, Madewell.

“We got pretty caught up — maybe too much — in just the commodity businesses and the basic businesses,” she said. J.Crew filed for bankruptcy protection in May 2020 after six straight years in the red before being bought in September by a group of lenders led by New York hedge fund Anchorage Capital Group LLC.

J.Crew is launching its new men’s collection Monday (July 25), trying to strike the balance between clothes you’d wear to the office and those you’d wear on a date. About 30% of the brand’s customers are men, a number Wade thinks can go up significantly, even if it’s wives or girlfriends buying the clothes for their loved ones.

Wadle is also addressing “operational inefficiencies” that led to quality issues for the brand and is trying to separate J.Crew from the days when it slashed prices to sell as many products as possible. Almost 70% of the company’s sales come through eCommerce, but brick-and-mortar is here to stay.

In fact, J.Crew will open a store this fall focused on men on the Bowery in New York City, in the hopes of having it serve as a template for other J.Crew outposts.

Related: Gap CEO Sonia Syngal Steps Down, Horacio Barbeito Named President and CEO of Old Navy

Earlier this month, fashion retailer Gap Inc. announced that President and CEO Sonia Syngal will be stepping down from her position and her seat on the company’s board after leading the company since 2020.

Bob Martin, the current executive chairman of the board, will become the new interim president and CEO, and Mayo Shattuck will continue in his role as lead independent director. Horacio “Haio” Barbeito, former president and CEO of Walmart Canada, is the new president and CEO of Old Navy.

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