If the suspected deal goes through early tomorrow, the retailer will sell itself to buyout firms TPG Capital and Leonard Green & Partners for approximately $2.8 billion (or $43.50 a share), after which the two companies would work with J. Crew's famed CEO Mickey Drexler to help fix any issues out of the public eye.
According to the Times' sources, Drexler and the buyout firms have been talking for the last several weeks and teams are currently working through the night in order to announce the deal before the stock market opens tomorrow.
If the deal does indeed go through, it wouldn't be the first time that the preppy clothier has teamed up with TPG.
In 1997, TPG bought an 88-percent stake in the company for $500 million and brought Drexler on in 2003, a move that helped turn the company into a thriving business that many other retailers have sought to emulate.
J. Crew has been public since June 2006.
In related news: read about J. Crew's executive creative director and president Jenna Lyon's take on the brand's Fall 2010 collection.