In 2011, Millard Drexler, the CEO of fashion retailing firm J. Crew, together with two private equity firms, TPG and Leonard Green & Partners, did a $3 billion lever- aged buyout. The strategy left J. Crew with approximately $15 billion of debt on its balance sheet. TPG had backed J. Crew in 1997, for which it earned a 700 percent return. In 2015, as part of a downturn in fashion retail, the company’s same-store sales were declining and its profits were falling. As a result, it laid off 10 percent of its employees. At the same time, Drexler, with over forty years of experience in the industry, was honored with a special industry award by the Council of Fashion Designers of America, which described him as “the Merchant Prince.” The decline in J. Crew’s revenues stemmed from a combination of at least three different factors. The first is the general economic downturn. The second was that the firm had lost ground to competitors, such as Ann Taylor and Old Navy, for clothing known as “athleisure wear.” The third is that J. Crew focused on high-priced, higher-end clothing at a time when its low-price competitors were increasing the quality of their products. In commenting on the firm’s prospects, Drexler sent out an e-mailed statement to say that he continues “to have confidence” in the company’s future growth, and that the company is “making the adjustments necessary to deliver the products its customers want.” Use the ideas developed in Chapter 7 to analyze whether psychological phenomena were prominent in the experience of J. Crew between 2011 and 2015.