J. Crew Madewell's "Jewel of the Crown" Files S-1 for IPO

Madewell asked to be made public.Business Insider / Jessica Tyler

• Madewell asked to go public on Friday, a process that would separate the company from its sister brand, J. Crew.

• CEO, Libby Wadle, said in a SEC filing that Madewell would focus on "stimulating disproportionate growth in e-commerce, expanding our product line and further developing our membership program."
• The IPO could generate a substantial valuation, which would help J. Crew pay off his debt by more than $ 1.7 billion, according to Moody's analyst Raya Sokolyanska.
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Madewell asked to go public, a process that would separate the company from J. Crew.

On Friday, Madewell's parent company, Chinos Holdings, Inc., filed an initial public offering.

Earlier this year, J. Crew announced his intention to explore an IPO of his Madewell division. Currently, Chinos Holdings is divided between Madewell and J.Crew activities, with Madewell accounting for approximately 20% of the company's business.

"In a certain way, we will continue as we have done – with organic and genuine growth, with our customers at the center of all the decisions we make," said CEO, Libby Wadle.

"But we will also focus on significant growth by creating new opportunities, including stimulating disproportionate growth in e-commerce, expanding our product range and further developing our membership program," said Wadle. .

The file cites risk factors, including the possibility of a bankruptcy filing by J. Crew, negative social media publications, and a decline in shopping mall traffic. About half of Madewell's sites are currently located in shopping centers.

"While J. Crew continues to struggle, Madewell has become the jewel in the company and represents the majority of the profits," said Friday Raya Sokolyanska, senior vice president of Moody's.

"The IPO could generate a substantial valuation and help repay a significant portion of the debt of over $ 1.7 billion, but the ultimate ability to cope with J.'s heavily leveraged capital structure. Crew depends on the receptivity of the public market to clothing retailers and the operational performance of the company, "added Sokolyanska.