Here are the painful steps J.Crew is taking to get back in the black

The J.Crew Group has seen declining sales for several years now. It is currently going through drastic cost-cutting measures in an effort to reverse the trend. In several cases, the J.Crew brand is poaching talent from Madewell, its younger, more successful sister brand. Here are some of the changes on the horizon, as reported by Bloomberg:

• The company will cut 150 full-time positions and 100 open slots, a move expected to save $30 million a year. (Although it will generate a one-time cost of $10 million for termination fees in the first quarter.)

• COO Michael Nicholson, who joined J.Crew last year from Ann Inc., will start managing the marketing and design decisions at the J.Crew brand.

• Lisa Greenwald will become chief merchandizing officer for the J.Crew brand; she previously oversaw merchandising at Madewell.

• CEO Mickey Drexler is discussing ways to restructure the company’s debt. 

• Three weeks ago, the company announced that J.Crew’s longtime creative director Jenna Lyons would be leaving the company at the end of 2017. Somsack Sikhounmuong, who previously served as Madewell’s chief creative officer, will take on Lyons’s role.  

[Photo: Unsplash user Shanna Camilleri]ES