J. Jill Files IPO Papers Confidentially
November 10 2016 - 4:30PM
Dow Jones News
Women's clothing retailer J. Jill Group Inc. is moving forward
with plans for an initial public offering and could debut as soon
as the first quarter, according to people familiar with the
matter.
J. Jill, owned since last year by private-equity firm TowerBrook
Capital Partners LP, has filed IPO paperwork confidentially with
the Securities and Exchange Commission, the people said. The
company had earlier tapped Bank of America Corp., Morgan Stanley
and Jefferies Group LLC as lead underwriters for the IPO, The Wall
Street Journal reported in April.
The offering could generate about $150 million and value J. Jill
at $750 million to $800 million, the people said.
J. Jill sells women's clothing, accessories and shoes. Its
target customer base of women between the ages of 40 and 65 has
been a rare bright spot for clothing retailers, many of which have
been battling sales declines amid shifting consumer tastes and the
rise of online shopping.
The IPO market, meanwhile, is on track to have one of the
slowest years since the financial crisis—and retail offerings have
been scarce. Just one, At Home Group Inc., went public on a U.S.
exchange this year, according to Dealogic. At Home is down about
26% from its IPO price.
While many companies in the IPO pipeline have opted for outright
sales instead, an IPO is a better option for J. Jill as there are
few corporate buyers with the appetite and wherewithal to pull off
a takeover, several people said. Even private-equity firms who
scour the landscape for such deals have been wary of buying niche
clothing sellers.
J. Jill has changed hands several times. It was once part of
Talbots Inc., which paid more than $500 million for the chain in
2006. Golden Gate Capital bought the then-struggling chain in 2009
for $63 million. Arcapita Bank later purchased a majority stake in
J. Jill before its 2015 sale to TowerBrook.
Write to Maureen Farrell at maureen.farrell@wsj.com
(END) Dow Jones Newswires
November 10, 2016 16:15 ET (21:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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