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J. Crew Suspends Madewell Spinoff Needed to Cut Debt Load

  • Retailer had proposed spinning off brand as stand-alone chain
  • Company and creditors couldn’t agree on the final terms
A Madewell store in the Brooklyn.
A Madewell store in the Brooklyn.Photographer: Gabby Jones/Bloomberg

J. Crew Group Inc. is suspending the initial public offering of its Madewell brand after it failed to reach a deal with creditors, according to people with knowledge of the matter.

Negotiators couldn’t agree on terms, and J. Crew is no longer considering taking its most profitable brand public in the near future, said the people, who asked not to be identified discussing a private matter. J. Crew could reverse the decision and offer a revised proposal if market conditions improve, the people said.