J. Crew closes twice as many stores than planned

J. Crew closes twice as many stores than planned

Company J. Crew has announced that it plans to close 39 stores by the end of January. It’s about 6% of the total number of its outlets and twice more than planned to close earlier.

The company, which also owns the trademark Madewell, reported that sales in stores fell by 12% in the last quarter of this year, and it is fatal.

For the first 9 months of 2017 J. Crewowned several hedge funds, has lost $ 161 million. Not all losses should be attributed to the decline in consumer demand. Pretty much the company had to spend on the implementation of the transformation plan and severance 250 laid-off employees.

According to the head of the company Mike Nicholson, such losses in the company perceive with optimism, because the reduction is part of the plan, under which J. Crew is entering the market of online sales.