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Saturday, in a surprise announcement, the company announced the departure of Jim Brett because of a disagreement with the board of directors on how to "evolve" J Crew. Four senior managers will share the responsibilities of the Chief Executive Officer.
"Jim Brett's departure is worrying for J Crew," said Neil Saunders, Managing Director of GlobalData Retail. "This leaves the brand without a leader at a time when it needs to focus on rebuilding sales and reconnecting with customers."
Brett came to J Crew from West Elm and faced the difficult task of revitalizing the brand. J Crew's sales are down and it carries a debt of nearly $ 2 billion resulting from a debt buyback completed in 2011.
"This company has not resonated particularly with buyers for years," said Sucharita Kodali, a retail analyst at Forrester Research. "They missed Athleisure as a trend and did not sufficiently rotate to digital or alternative brands, while the consumer was buying more online from niche brands."
Pricing is a persistent problem for the brand. J Crew asserted that he could charge higher prices even though customers were moving away, Saunders said. "Today's more democratic fashion market is teeming with retailers selling trendy and low-cost essentials, which has made J Crew's position untenable."
Brett oversaw the revival of the brand – "New Crew" – to get J Crew off his preppy roots and connect with more consumers.
It also launched a loyalty program last summer, allowing customers to recover money after a certain amount of purchases.
"We need to reflect America today, which is far more diverse than America from 20 years ago," Brett said in an interview with The Wall Street Journal this year.
"You can not be a price, you can not be an aesthetic, you can not be a single fit."
In August, J Crew broke a string of declining sales in stores for four years. Brett called it a "decisive moment".
Three months later, he leaves his post and J Crew's future is uncertain.
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