Today, we are looking at J Crew stock and answering the question, is it publicly traded? Read on to learn more about J Crew.
Contents
- Introduction
- Why Has J Crew Gone Public and Then Private Again?
- J Crew Revenue & Losses
- How To Invest In J Crew
- Similar Investment Opportunities
- Stock Price for J Crew in 2022?
- Final Summary | J Crew Stock
Introduction
The J Crew company is recognized as one of the most popular clothing retailers.
Some investors may remember when J Crew went public and submitted an IPO and raised more than $300 million.
A few years later, the company became private again and forced investors out of their positions after a massive buyout in 2011.
Some investors may crave the opportunity to invest again in a company like J Crew.
Sadly the company is privately held now and has been for the last decade.
Since J Crew is currently a privately held company, there is no way to directly invest in J Crew as a company, which means that traders could look elsewhere to find a similar investment opportunity.
Some many other retailers and brands share similar business models to J Crew, which means that there could be some upside potential for investors.
So, if J Crew went public once, couldn’t it be relatively possible that they would go public again at some point in the future?
It’s always possible for a company to raise money by offering shares to investors but going public is a major step for any company, and that doesn’t exclude a company like J Crew, which is a company that has already gone down this pathway before.
Why Has J Crew Gone Public and Then Private Again?
It is somewhat unusual for a company to go public and then become private again in just a few years.
The stock’s final days of being public resulted in a closing price of $37.65, but the company actually paid shareholders $43.50 per share one day later after the company buyout was completed to become privately held again.
The company has faced a collection of positives and negatives over the years since going private in 2011, but the company seems to be doing much better in recent years.
The new owners of the privately held company J Crew are listed as Anchorage Capital and Leonard Green.
There could be a few reasons that the company might want to go public again in the future, but it seems unlikely right now.
The company currently has more than 500 locations and is nearing 10,000 active employees across all locations.
This retail company was originally founded back in 1947 and was rebranded in 1983.
While J Crew has a long history of success and struggles, investors will have to wait an indefinite amount of time until they have the opportunity to invest in J Crew again directly.
J Crew Revenue & Losses
J Crew had faced Chapter 11 bankruptcy but has managed to restructure itself financially to build for long-term growth and potential success. In 2019, the company reported a revenue of 2.5 billion dollars.
The net income during the 2019 calendar was nearly 80 million dollars in the negative, although the company did have nearly $1.6 billion in total assets.
With a substantial net loss and new majority ownership in the company, it seems unlikely that the company would consider going public again.
At the conclusion of the bankruptcy, Anchorage Capital took over as the majority owner.
As the world economy starts to deteriorate, it is possible that some tough times ahead could still exist for a company like J Crew.
The company’s conservative financial restructuring could have a positive impact on the future success of the brand, though.
Only time will tell if the company can get things turned around in the coming years, but the private ownership is hoping that momentum will start building in favor of the New York-based company.
How To Invest In J Crew
The last time that investors had the opportunity to invest in J Crew was back in 2011.
As mentioned, the company’s shareholders received $43.50 for every share they owned, despite the fact that the stock’s closing price on the last day of trading was only $37.65.
Investors have not been able to directly invest in the company since that day and may not get that opportunity again.
Some alternative companies may be appealing to some types of traders, although none provide a direct link to J Crew.
Before we discuss some of the best investment alternatives, let’s take a look at a few key points in the history of J Crew.
- J Crew was privately held, became public in 2006, and then became private again in 2011.
- The company was forced to file for Chapter 11 bankruptcy on May 4th, 2020.
- There is no indication of J Crew becoming a publicly listed company again in the near future.
While there is no direct stock market listing for J Crew, a few investors have had great success investing in similar companies like GAP and Nordstrom.
Many retailers faced challenges during the worldwide COVID-19 pandemic, which seemingly has come and gone, but not without major economic casualties.
The good news is that many investors may find it appealing to invest in rival brands like GAP or Nordstrom, which can easily be found on North American stock exchanges trading at $8.50 and $20.28 as of July 2022.
Similar Investment Opportunities
There are a few great investment alternatives within the retail industry.
Let’s quickly discuss three of the best possible investments that feature companies that conduct business in a similar way when compared to a brand like J Crew.
GAP
GAP was founded in 1969 and is headquartered in San Francisco, California.
The company’s stock may appeal to investors because of its long-term growth potential.
GAP has struggled like most other retail companies during worldwide events like the pandemic and economic recessions.
During bullish economic times, GAP has always performed well, and investors may feel like investing in this solid company since they cannot directly invest in J Crew.
The stock is currently trading for around $8.60 per share in July of 2022.
Nordstrom
Nordstrom is another great investment that may provide a unique opportunity for some investors.
With more than 70,000 employees and more than $14 billion in revenue during the 2021 calendar year, investors may opt-in to buying shares of Nordstrom in July of 2022, where the stock is currently trading for just over $20 dollars per share.
Ross Stores
Ross Stores is headquartered in California, with more than 90,000 employees in 2022.
The company has struggled during the COVID-19 pandemic but is starting to see a brighter future develop as revenues pick up.
The company is trading for approximately 74 dollars per share in July of 2022 and shows decent potential to continue rising as economic conditions improve.
These are only three of the major companies that investors might want to be aware of while analyzing the stock exchange for similar companies to J Crew.
None of these companies are the same as J Crew, but several provide similar investment opportunities.
At the very least, you could gain exposure to specialty retailers and clothing retailers by investing in any of the alternative companies listed above.
Stock Price for J Crew in 2022?
Does J Crew have a stock price?
You won’t be able to find the J Crew stock price on a stock exchange in 2022 because the company doesn’t have a public trading symbol anymore after going private back in 2011.
Since the company is no longer public, there’s no stock price for this company in 2022.
The shareholders of J Crew received $43.50 per share when the buyout was completed, even though the stock’s closing price was several dollars lower just a day before.
Alternative companies like Nordstrom and Ross Stores have publicly traded stocks on the stock exchange.
While stock prices are important, dividends can also provide great returns on investments for traders.
Nordstrom and Ross Stores provide their shareholders with quarterly dividends at dividend yields above 1.0%.
It may be wise to factor in the dividend yield before you commit to an investment, especially in long-term trading strategies with companies like Ross or Nordstrom.
Final Summary | J Crew Stock
J Crew has been around for several decades and has faced devastating economic challenges, including a recent bankruptcy filing.
After struggling through the COVID-19 pandemic and going public and private more than a decade ago, J Crew is still widely considered to be one of the most famous specialty retailers that offer a variety of clothing products to consumers.
The financial future for J Crew as a company is very uncertain and may be risky.
The company is internally confident that its financial future is much brighter, although investors may never have the opportunity to buy shares again.
Some of the good news is that several alternative companies are available to invest in.
The most experienced investors should strongly consider the various alternative companies, mainly because they can also produce a profitable return.
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
