What is J.Crew’s stock price, and are they publicly traded? Investors cannot purchase shares of J.Crew because they are a private company. Gap Inc (NYSE: GPS) and Urban Outfitters Inc (NASDAQ: URBN), are clothing companies that traders can invest in.
J. Crew has been off the public exchanges since 2010. There was some rumors about them being bought out after they entered Chapter 11 bankruptcy but that never happened. They are planning to continue to operate with a pared-down brick-and-mortar footprint. J.Crew is owned by private equity firms with no imminent plans of having J.Crew traded on the stock market.
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We’ve probably all heard of or shopped at Jcrew at some point in our lives. Going to the mall, you can’t help but see the stores there. They have an outlet too. And you can get some great deals on clothes there! Who doesn’t love a good deal? I don’t know about you, but I sure do!
If you’ve ever been to a shopping mall or outlet mall in America you’ve either been in or walked past a J.Crew store. The American clothing retailer is equal parts preppy and fashionable. They’ve been featured at major events like the New York Fashion Week in the past. J. Crew was founded in 1947 in New York as a women’s clothing brand that sold affordable outfits as a retail outlet called Popular Merchandise. It wasn’t until 1983 that Popular Merchandise changed its name to J.Crew and in 1989, it opened its first official stand alone store in downtown Manhattan. So can you trade Jcrew stock?
J.Crew Brand Spinoffs
J.Crew has some notable spinoff brands. Madewell is one. They make women’s clothing for a younger audience. Madewell was actually supposed to debut via an IPO on the public markets earlier this year.
However, the deal was scrapped as the COVID-19 pandemic began to rear its ugly head in the retail industry. The brand also has J.Crew Mercantile, J.Crew Factory, the Ludlow Shop, and crewcuts under its corporate umbrella. J.Crew is another one of these companies that has had stints as a public company in the past. In 2006, J.Crew actually IPO’d on the public markets. But was taken private in a deal with some private equity firms in 2010. Its short-lived life as a publicly traded stock was uneventful.
J.Crew operates over 500 stores across its various brands in North America. It once had international stores in numerous countries such as Japan, France, and Hong Kong. So what does that have to do with Jcrew stock?
JCrew Stock and COVID-19
In May of 2020, J.Crew filed for Chapter 11 bankruptcy as a result of the COVID-19 pandemic. It was one of the first big retail brands to be shut down in America.
But it definitely wasn’t the only company that we saw struggle as the year went along. While the move wasn’t completely unforeseen, it was still a shocking reminder to investors and consumers that the novel coronavirus would have lasting economic impacts that we still had not witnessed at the time.
J.Crew admittedly had issues with debt leading up to this year. But the COVID-19 pandemic was enough to push the company over the edge.
As a result, J.Crew temporarily closed all of its retail stores across the J.Crew and Madewell brands. However, they did continue to operate its website as an eCommerce option for customers.
As of December, J.Crew has re-opened many of its stores and re-hired most of its previously furloughed employees; including hiring an additional 400 positions at one of its major distribution centers in Virginia. Which would be good for Jcrew stock.
More COVID-19 Retail Bankruptcies
As mentioned earlier, J.Crew wasn’t the only casualty of the COVID-19 pandemic as breakdowns in supply chains and store and mall closures caused a huge hit to retailers’ bottom lines.
Most of these brands have filed for Chapter 11 bankruptcy; which is a way for companies to financially restructure themselves by paring debt and assets. Unfortunately, we may have seen some of them for the last time.
Here’s a quick list of a few of the other well-known retailers that were forced out of business during the pandemic.
J.C. Penney: Like with many of these brands, COVID-19 was merely the straw that broke the camel’s back when it came to filing for bankruptcy. The 118-year old department store brand was experiencing falling sales numbers and lower in-store visits; even before the pandemic hit.
A temporary shutdown of its stores was enough to deliver the finishing blow. Executives are confident that J.C. Penney can still exist post-pandemic; albeit in a much different state than it is now.
The restructuring will result in at least a third of the current brick and mortar stores closing; with a lingering outside chance of the company being completely liquidated. However, you can trade $JCP but there’s no Jcrew stock.
Bankruptcy Continued
Neiman Marcus: The luxury brand department store was hit hard by the pandemic. Not just because of store closures but an overall decline in spending on luxury goods.
The 100-year old retailer based out of Texas filed for bankruptcy with a contingency plan already in the works. Private equity firms will be bailing Neiman Marcus out.
But how it’ll look after the restructuring is still up for debate. Neiman Marcus only has 67 stores in America. Its exclusivity is part of the allure.
The brand has been able to up the eCommerce side of the business. However, the brick and mortar side of Neiman Marcus may never look the same again.
GNC: The health and vitamin store that is present in nearly every mall across America filed for bankruptcy in late June. As mall closures and overall decline in spending on non-essential products hit GNC hard.
The restructuring plan includes the closure of 1,200 stores across the country. Although some deep-pocketed firms have already stated interest in buying a stake in GNC. So this shouldn’t be the last time we see it. So you can trade $GNC but there’s no Jcrew stock.
More Companies Hurting
Brooks Brothers: A bit of an overlap in market with J.Crew, Brooks Brothers is a 200-year old company that provides business and business casual wear to men.
Well, with everyone working from home these days, guess what isn’t in demand? Business clothes. There are already several suitors for Brooks Brothers.
So this is another company who should barely manage to survive the pandemic. But with working from home being looked at as a new normal for companies around the country, it’s difficult to see the demand for Brooks Brothers return in the near future.
Muji USA: The home goods chain that is ever popular in Japan has been in the USA since 2006. But after waning interest from American customers and store closures, MUJI has decided to pack its bags and leave the United States for good.
MUJI USA still plans to have an online presence. But the restructuring due to the COVID-19 pandemic will cause all 20 stores to close by early 2021. Bye bye both Muji and Jcrew stock.
Are There Companies Like J.Crew I Can Invest In?
Yes! There are several big-name retailers that you can invest in. Especially since there’s no Jcrew stock. Although given the current state of the industry, clothing retailers may not be the most lucrative investment moving forward.
Here are a few companies that you can invest in if you are looking to diversify your portfolio with some clothing retailers:
The Gap (NYSE:GPS): Like many retailers, the GAP’s stock got beaten down during the bear market in March hitting lows of $5.26 per share. Currently trading at about $20.21 per share, the GAP has mostly recovered. But that still doesn’t mean it’s an investment worth looking at. Aside from an upcoming collaboration with rapper Kanye West, the GAP owns Banana Republic and Old Navy as well.
American Eagle Outfitters (NYSE:AEO): Another clothing company that is past its prime, American Eagle used to be a staple at malls across North America. The stock is trading right around its 52-week highs; at $19.17. So again not a very tempting investment given the uncertain future of retail and malls.
Nordstrom (NYSE:JWN): A department store that’s also finally recovering from the lows of March, Nordstrom has been a solid investment in years past. One of the innovators of the eCommerce space, Nordstrom may actually be worth taking a look at. They’re a brand that has shown it can flourish in the middle-class range between the likes of J.C. Penney and Neiman Marcus.
J.Crew Stock Final Thoughts
J.Crew is a popular brand with fashionable clothes at a decent price. So it’s definitely a good thing that they’re sticking around despite the COVID-19 pandemic forcing their hand in filing for Chapter 11 bankruptcy.
As far a J.Crew stock goes, it’s privately owned for now. It doesn’t appear that they’ll be publicly traded anytime soon. As far as retailers go, there aren’t too many great stocks to look at right now.
Especially with so much uncertainty for the future of the industry. If you really want to invest in a clothing stock, we suggest foundational companies like Nike (NYSE:NKE) or Lululemon (NASDAQ:LULU).
The shift away from going into the office will have more people reaching for casual wear. Finally, if you really want to invest in retail outlets, take a look at the REIT Simon Property Group (NYSE:SPG) as one of the best companies that manages malls and outlet malls in America.
