Uniqlo parent company Fast Retailing are in talks with the owners of J Crew, as the Asian giant mulls a takeover bid for the US preppy retailer.
Fast Retailing has approached J Crew owners – private equity firms TPG and Leonard Green & Partners - according to the Wall Street Journal. Sources indicated that the pair would be looking for “upwards of $5bn”, although it is not clear whether Fast Retailing would pay that much.
The talks come as the two firms also consider floating the retailer, which launched in the UK last autumn to much fanfare. WSJ’s sources said the company asked Goldman Sachs Group to advise on a potential IPO back in January.
Uniqlo, which has 1,277 stores in Asia including 856 in Japan, has fewer than 20 in the US, while J Crew has 400 stores in the States.
Fast Retailing reported profits of Y90bn (£530m) on sales of Y1.14 trillion last year. J Crew reported revenues of $2.4bn (£1.4bn) in its financial year, which runs to February 1.