Tokyo-based Fast Retailing Co. Ltd., which owns Uniqlo and other brands, has ended talks to acquire J.Crew from its private equity owners, sources said Tuesday.
The talks have been off for a few weeks, though some sources said they could be revived.
Observers had said from the get-go that J.Crew’s asking price of as much as $5 billion was too high, even for the ambitious Japanese company.
With a possible deal to acquire J.Crew faltering, Fast Retailing’s ambitions to overtake Zara, H&M, and Gap to become the world’s top retailer are also stymied somewhat for the time being. It won’t stop Uniqlo’s global expansion however, and their plans for 20 to 30 new U.S. Uniqlo stores a year in the next few years. CEO Tadashi Yanai is making his aspirations for his company well known, so look for more creative ways Fast Retailing will continue to grow. Meanwhile, look for a J.Crew IPO to happen this year instead.