I am shocked that a J.Crew store owes that much in back taxes. Especially since J.Crew (overall) is doing so well. Maybe it's time to rethink those big bonuses (wink wink at you Mickey & Jenna), and start helping out your stores.The Philly J. Crew Store Owes Over $1M In State Taxes, And Other Fun Facts Revealed By The PA Tax Delinquent Report
August 17, 2010
The state of PA released its tax delinquent report yesterday, and it contains a lot of the usual: Big companies not paying their taxes, often in league with big mahoffs doing the same. This time around, the state also released a list sorted by lien amounts, a whopping 1,483-page affair that you can download as a PDF here. Among the fun finds:
· The Philly outpost of J. Crew owes $1,251,538.42! That is a lot of argyle socks.
Tuesday, August 17, 2010
J.Crew Store in Philly Owes a Lot of Money
So this bit of J.Crew news from Philebrity caught my eye (click here to read in its entirety)...
20 comments:
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I guess J Crew has grown too fast. Retail is the first to get hit when there is a downswing in the economy. We are still not in a surplus in this country.
ReplyDeleteEven with the effects of our macro-economy, there is no excuse for J. Crew not paying their property or state taxes.
ReplyDeleteAs a CPA and someone who works at a major retailer's corporate headquarters, it sounds like they need to tighten up the controls around the corporate office.
Holy moly. I can't believe J. Crew owes back taxes. And I support this company. Gawd.
ReplyDeleteAh, yes, attention to detail. Permeates the corporate culture, I guess. Just a minute ago I went to the web site to see if the Taffeta Seine Vest (the mushroom-like thing that had us so excited a month or so ago) was still there (yes, morbid curiosity), clicked "shop this outfit" and was taken to the Whisper Glimmer Cardigan, no. 29185. It's like nobody there is paying attention to their jobs. Too busy getting ready for their close-ups, I guess.
ReplyDeleteStill waiting for next rollout, ever optimistic… I can forgive a lot if I love the clothes.
Who's minding the store, literally?
ReplyDeleteToo much time in front of the camera and microphone does not pay the bills!It sounds as if they are having the same problems in the corporate office as they are in the warehouse and on the sales floor. WHat would happen if we refused to pay sales tax on our JCrew items? I don't think we would get very far...
MJ cracked me up - "hey JC, can you just send me a bill once a year for all the tax on the stuff I got at your stores. I'll pay you then - really."
ReplyDeleteUgh, I hate tax cheats. Suppose they're hoping that as a "one-time courtesy" the IRS will look the other way.
ReplyDeleteLBH- dang it, that's too funny.
ReplyDeleteLBH - that "one time courtesy" line just cracked me up.
ReplyDeleteI would have never thought JC would be this way at the corporate level. Someone needs to be fired!
Mickey is so focused on his Madewell brand and Jenna is so busy with PR it's a mess in their financial books.
@LBH:"one time courtesy" indeed! LOL
ReplyDeleteThat's one store that's been caught. $1,000,000 plus is not exactly an insignificant amount. You can bet the IRS is gonna be ALL OVER this, ladies.
How many others are in arrears I wonder? When the tally is run, how much is JC on the hook for?
not that the two issues are related, but that store always leaves me underwhelmed. glenn is a nice guy, but every other associate i've interacted with there fades into the background or is crewless, imo.
ReplyDeleteI think we should ask all our B&M stores if THEY are paid up on their taxes.
ReplyDeleteThat is pathetic. I am ashamed to say I am supporting this. I am staying out of target because of a political issue right now. I would say this is worse.
I own a corporation (very small) and golly, if I were 1 million behind in taxes, um, I would NOT be getting a bonus. I won't let myself get even a week behind in taxes or I'm screwed.
Dying at LBH's "one time courtesy" line. J.Crew really needs to get a grip, $1 million in back taxes is no joke.
ReplyDeleteFire sale please?
ReplyDelete...love the 'one time courtesy' comment. I was served that line today thank you very much. Remember to bring this up on Martha's show!
ReplyDeleteMaybe this is where all the JCrew clothes/Obama relationship comes in handy. (hee hee-sorry just had to say that)
I may be way off here, but I can't help but wonder if there's some kind of correlation between J.Crew's debt and the declining quality of their merchandise. About 10 years ago now, I was working for another retailer and I started noticing a massive decline in quality, i.e. I would bring home a cashmere sweater selling for $188 and after the first wearing it would be literally falling apart at the seams (and the company wouldn't take it back because I used my 50% employee discount, making it final sale). Then one day at the store our lights and electricity suddenly went out. Turns out headquarters in California had neglected to pay the electric bill! And I would repeatedly hear nightmarish stories from coworkers who had been with the company a long time about all kinds of debt the company was in.
ReplyDeletePerhaps I'm reaching? But it does seem to me if JC were looking to cut expenses, they would do so at the expense of the customer before eliminating million dollar bonuses... there just seems to be a precedent for such practice in the industry. Not to mention the fact that if, say, a sweater falls apart on you this winter, you're going to have to buy a new one next winter.
Dara,
ReplyDeleteI think you are definitely on to something.
In general though I think quality (and customer service) are declining everywhere but it just seems VERY NOTICEABLE at JCrew!!!
LBH-you are too funny! But seriously folks, how does a corporation get that far behind on taxes? At the million dollar level, it's well past someone forgetting to write the check at the end of rhe last quarter. I can't remember-didn't the Crew cut out some of their employee benefits/bonuses a couple of years ago when they were tightening their financial belts? I wonder how those people,(and the IRS), feel about Jenna's big bonus? I agree with LBH, I strongly dislike those who do not give Caesar his due. I can't help but think that their own opinion of themselves is so high that they see no need to mind the rules that govern the rest of the population.
ReplyDeleteI've worked for several big corporations when temping and dealt with the mail. You'd be surprised how they deal with their bills--they routinely don't pay (utilities often a year behind). I hate to say it but this doesn't seem uncommon to me. It has to be a business tactic, and I'm sure it's related to "too big to fail."
ReplyDeleteAnd, no, private individuals can't act this way. I also imagine small companies aren't extended this courtesy. But I don't think it is a sign that J. Crew is in trouble.
LBH and IRL - best things I've heard all day. No, all week.
ReplyDelete