J. Crew Group will discontinue Mercantile, its budget clothing line, and shut down its new Nevereven brand, according to an internal memo sent Thursday, The Wall Street Journal reported.
The end of the Mercantile line raises questions about J. Crew’s deal with Amazon, which currently sells only the budget line. The Amazon deal was made under former CEO James Brett, who left the company earlier this month. J. Crew had avoided selling its products on Amazon for fear it would cheapen the brand, the Journal reports.
In the memo the company told employees its priorities are to “return the J.Crew brand to profitable growth” and “more diligently manage our balance of investments and expenses,” the Journal reported. The company will focus on growing its lower-cost “factory” business online and in stores.
“We believe that a ‘good’ price tier opportunity is better served by the J.Crew label,” the memo says, according to the Journal.
Read the full report in The Wall Street Journal.
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