Deals
Chewy's Runaway IPO Blazes Path for J. Crew and Neiman Marcus
- The spinoff almost doubled the price of PetSmart’s notes
- Could Madewell and MyTheresa sales mean bonanzas for bonds?
Dogs are walked in front of the New York Stock Exchange during Chewy Inc.'s initial public offering.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
PetSmart Inc.’s massively successful stock offering of Chewy.com, and the windfall it created for creditors, is stoking speculation that other deeply indebted retailers will stage sales of their own fast-growing units.
Neiman Marcus Group Ltd. and J. Crew Group Inc. have already said they’re exploring strategic options for their booming side businesses, MyTheresa and Madewell. Should those assets be shopped or go public, stakeholders would benefit if the proceeds are used to pay down debt or bolster the balance sheets.