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Chewy’s Runaway IPO Blazes Path for J. Crew and Neiman Marcus

June 20, 2019, 1:25 PM

PetSmart Inc.’s massively successful stock offering of Chewy.com, and the windfall it created for creditors, is stoking speculation that other deeply indebted retailers will stage sales of their own fast-growing units.

Neiman Marcus Group Ltd. and J. Crew Group Inc. have already said they’re exploring strategic options for their booming side businesses, MyTheresa and Madewell. Should those assets be shopped or go public, stakeholders would benefit if the proceeds are used to pay down debt or bolster the balance sheets.

It’s certainly working out for debt holders of PetSmart, whose 2023 bonds sold for just 56 cents on the dollar ...

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