Mickey Drexler out as CEO of J.Crew Group
It's the end of an era in retail. One of the most prominent — and legendary — chief executives in retail is stepping down.
Millard “Mickey” Drexler, the longtime chief executive of J. Crew Group, will relinquish his CEO title in July, but will continue in his role as chairman. Drexler will be succeeded by retail veteran James Brett, who most recently served as president of West Elm, a division of Williams-Sonoma.
Famously known as a “merchant prince,” Drexler is one of the industry’s most high-profile executives. He is the former CEO of Gap Inc., which he joined in the early 1980s and built into a global retail powerhouse. He was abruptly fired in 2002 by Gap founder Donald Fisher amid a prolonged period of slumping sales. Prior to joining Gap, he served as president and CEO of Ann Taylor, where he oversaw a dramatic turnaround.
Drexler took the reins of the then-struggling J. Crew in 2003, investing $10 million of his own money into the company and turning it into one of retail's hottest specialty brands. But the retailer has struggled with slumping sales in recent years under increased competition from online and fast-fashion and its own fashion and pricing missteps. Same-store sales at J. Crew have fallen in 11 of the last 12 quarters. The company is also burdened with about $2 billion in debt resulting from a leveraged buyout in 2011 by TPG and Leonard Green & Partners. It is facing a restructuring deal with lenders.
"This is an exciting time for J.Crew as we continue to make significant changes to position our company for long-term success," said Drexler. "As chairman and an owner of the company, it is my responsibility to focus on the future of J.Crew and find the right leadership to execute on our strategic plans.”
Drexler said Brett was chosen due to his “proven track record of pushing for innovation and growing omnichannel brands,” he said. “I look forward to moving into my new role, and assisting Jim and the team in every way possible to help ensure a smooth and successful transition.”
Brett has been president of West Elm since 2010. Besides overseeing all aspects of the brand, during his tenure, Brett grew West Elm to become a $1 billion global brand. Prior to West Elm, Brett was the chief merchandising officer for the Urban Outfitters division of Urban Outfitters, Inc. He has also served in various merchandising roles at other retailers including Anthropologie, the J.C. Penney Company, Inc. and May Department Stores Company.
This high-profile announcement comes on the heels of other recent strategic changes at J. Crew. In April, the fashion apparel retailer announced it was reducing headcount by approximately 150 full-time and 100 open positions, mostly from corporate headquarters. The company expected the downsizing to contribute to approximately $30 million of annualized pre-tax savings. It will record a charge of approximately $10 million in the first quarter of fiscal 2017 for severance payments and other termination costs.
J.Crew’s reorganization, which also included a shake-up of its executive team, began after J. Crew announced that longtime creative director Jenna Lyons will step down from the company at the end of 2017.
Millard “Mickey” Drexler, the longtime chief executive of J. Crew Group, will relinquish his CEO title in July, but will continue in his role as chairman. Drexler will be succeeded by retail veteran James Brett, who most recently served as president of West Elm, a division of Williams-Sonoma.
Famously known as a “merchant prince,” Drexler is one of the industry’s most high-profile executives. He is the former CEO of Gap Inc., which he joined in the early 1980s and built into a global retail powerhouse. He was abruptly fired in 2002 by Gap founder Donald Fisher amid a prolonged period of slumping sales. Prior to joining Gap, he served as president and CEO of Ann Taylor, where he oversaw a dramatic turnaround.
Drexler took the reins of the then-struggling J. Crew in 2003, investing $10 million of his own money into the company and turning it into one of retail's hottest specialty brands. But the retailer has struggled with slumping sales in recent years under increased competition from online and fast-fashion and its own fashion and pricing missteps. Same-store sales at J. Crew have fallen in 11 of the last 12 quarters. The company is also burdened with about $2 billion in debt resulting from a leveraged buyout in 2011 by TPG and Leonard Green & Partners. It is facing a restructuring deal with lenders.
"This is an exciting time for J.Crew as we continue to make significant changes to position our company for long-term success," said Drexler. "As chairman and an owner of the company, it is my responsibility to focus on the future of J.Crew and find the right leadership to execute on our strategic plans.”
Drexler said Brett was chosen due to his “proven track record of pushing for innovation and growing omnichannel brands,” he said. “I look forward to moving into my new role, and assisting Jim and the team in every way possible to help ensure a smooth and successful transition.”
Brett has been president of West Elm since 2010. Besides overseeing all aspects of the brand, during his tenure, Brett grew West Elm to become a $1 billion global brand. Prior to West Elm, Brett was the chief merchandising officer for the Urban Outfitters division of Urban Outfitters, Inc. He has also served in various merchandising roles at other retailers including Anthropologie, the J.C. Penney Company, Inc. and May Department Stores Company.
This high-profile announcement comes on the heels of other recent strategic changes at J. Crew. In April, the fashion apparel retailer announced it was reducing headcount by approximately 150 full-time and 100 open positions, mostly from corporate headquarters. The company expected the downsizing to contribute to approximately $30 million of annualized pre-tax savings. It will record a charge of approximately $10 million in the first quarter of fiscal 2017 for severance payments and other termination costs.
J.Crew’s reorganization, which also included a shake-up of its executive team, began after J. Crew announced that longtime creative director Jenna Lyons will step down from the company at the end of 2017.