J.Crew's Deal To Go Private {it just got more interesting}

We have been tracking J.Crew's deal to go private for some time now (click here and here). Well, it just got more interesting. The following is an article from the New York Times' Dealbook (click here to read in its entirety):

Sears and Urban Outfitters Circle J.Crew
By Michale J. De La Merced
January 5, 2011

The “go-shop” provision in the $3 billion proposed buyout of J.Crew has now attracted window shoppers.

Several retailers, including Sears Holdings and Urban Outfitters, have been studying J.Crew’s books, according to people with direct knowledge of the matter. Urban Outfitters is seriously weighing a counterbid for the high-flying preppy retailer.

J.Crew, the clothier of choice for the likes of Michelle Obama, agreed on Nov. 23 to sell itself for $43.50 a share to buyout firms TPG Capital and Leonard Green & Partners. The agreement included a “go-shop” provision that allows the company to entertain rival offers until Jan. 15.

A key part of that transaction was the support of J.Crew’s chairman and chief executive, Millard S. Drexler, who turned around the company and owns a 11. percent stake.

While keeping Mr. Drexler on board would crucial to any successful suitor, that may not be the case with Urban Outfitters, which has a well-regardeed management team. ...

There are lots of articles discussing this news including:

• Bloomberg
  ["Sears, Urban Outfitters Said to Weigh J. Crew Bids"]
• BusinessWeek
  ["Sears, Urban Outfitters Said to Weigh J. Crew Bids"]
• 24-7 Wall St
  ["Rival J. Crew Bids Could Bring CEO Drama and Showdown"]
• "Thanks!" to D for sharing the article in New York Post
  ["Drexler's wary about 2 new J. Crew suitors"]
• "Thanks!" to Heidi for sharing the article in NY Mag
  ["Sears and Urban Outfitters Might Submit Bids for J.Crew"]
  

The way this original deal (between J.Crew and TPG Capital / Leonard Green & Partners) came about was a bit shady (with Drexler arranging a deal before notifying the full J.Crew board). No matter who J.Crew sells out to, Drexler will be making lots of money off this deal. But will he get to keep his job if it's not with TPG Capital / Leonard Green & Partners?

With that said, I am not sure how I feel about Sears Holdings or Urban Outfitters taking over J.Crew. Sears does a fine job with Lands End and Urban Outfitters does a great job with Anthroplogie, but I like J.Crew's offerings and customer service a lot more. I hate to see it change.

What are your thoughts on this latest news? Do you think Urban Outfitters or Sears would be a good match with J.Crew? Do you think going private is still the right move for J.Crew?