Just as quickly as word of a potential buyout for J.Crew surfaced, the deal has fallen apart. Japan's Fast Retailing, the parent company of Uniqlo, has ended talks with J.Crew to buy the U.S. retailer, according to The Wall Street Journal.
It was estimated the deal could have valued J. Crew at $5 billion. J.Crew was last acquired by TPG and Leonard Green in 2011 for $2.8 billion. Talks with Fast Retailing could be revived, a source told WSJ.
Now that the merger deal is off the table, sources have suggested that J.Crew may be heading for an IPO. J.Crew's owners reportedly approached Goldman Sachs in January to investigate a potential IPO.
J.Crew operates more than 400 stores in the U.S., Canada and the U.K., including 257 J.Crew retail stores, eight Crewcuts stores and 65 Madewell stores. Its revenue rose 9 percent to $2.4 billion in the fiscal year ended Feb. 1.
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