J.Crew CEO James Brett Steps Down after Short Tenure

J.Crew Group Inc, known for its preppy men’s and women’s clothing, said that its Chief Executive Officer James Brett is leaving the company, effective immediately.

The decision, which leaves the retailer without a CEO ahead of the key holiday shopping season, was described in a statement as a mutual agreement between Brett and the New York-based company’s board of directors.

Brett, a long-time retail veteran who was named to the job in June 2017, said he and the board were "unable to bridge our beliefs on how to continue to evolve all aspects of the company." He had replaced retail legend Mickey Drexler, who remains chairman of the J.Crew board.

In the company’s second quarter, it said same-store sale rose 5 percent following a decrease of 5 percent in the same quarter last year. Net losses in the quarter totaled $6.1 million, down from $18.5 million a year earlier. The executive’s responsibilities will be assumed by an office of the CEO, comprised of four senior J.Crew executives including President and Chief Operating Officer Michael Nicholson.

That office will manage the company’s operations as the board works to establish a permanent management structure, according to J.Crew.

Brett joined J. Crew from Williams-Sonoma Inc.'s home furnishings chain West Elm. At the time, the company was struggling under a debt load from a 2011 leveraged buyout by TPG and Leonard Green & Partners LP.

He'd recently overseen efforts to relaunch its famously preppy namesake brand to focus on diversity by offering more size options and entry-level prices. The company had success with Madewell, a brand designed to appeal to millennial women by embracing more of a tomboy style.

Under Brett, the retailer posted positive comparable sales for two straight quarters after years of declines, thanks in part to Madewell. It also partnered with Amazon to offer clothing on the Amazon Fashion platform, and broadened its reach by selling through Nordstrom.