J. Crew to cut budget line

Struggling J. Crew will cut its budget Mercantile line and discontinue the newly launched Nevereven brand after a shakeup in leadership.

The move was announced to company workers in an internal memo recently obtained by The Wall Street Journal. The decisions undo some moves by former CEO James Brett, who left the company recently after disagreement with the board.

The company, which had long avoided working with Amazon, made a deal in September to sell the Mercantile brand on the online giant.

J. Crew instead plans to focus on growth of its lower-priced outlet business, both in store and online, the memo said. The phaseout of the brands next spring and summer is expected to free former Mercantile staff for the outlet business.

There is a J. Crew Mercantile store at The Greene Town Center. Mall leadership said J. Crew has made no plans to leave the shopping center.

Revenue increased 10 percent during the company’s third quarter and comparable sales grew 4 percent at J. Crew, following a 13 percent decrease during the third quarter of 2017, according to a company statement. A recorded net loss of $5.7 million is down from the company’s $18.4 million loss during the third quarter last year.

J. Crew Factory store is at Cincinnati Premium Outlets.