J. Crew is exploring a potential initial public offering for its fastest growing brand Madewell, the company said in a release Thursday.

The IPO for the preppy fashion retailer could happen as early as "the second half of 2019."

J. Crew said the move is a part of its initiative to "maximize value, position both the J.Crew and Madewell brands for long-term growth, and deleverage and strengthen the Company's balance sheet." The clothing company carries a debt load exceeding $1.7 billion, according to a Reuters report.

J. Crew's top priority this year is to return its flagship brand to profitability and sustain momentum for its quickly growing Madewell apparel business.

"We believe a potential IPO of Madewell, which had another record year of performance in 2018, could unlock significant value and generate meaningful proceeds that would strengthen our balance sheet and increase our overall financial flexibility to address our 2021 debt maturities, giving us an improved platform to support J.Crew's turnaround and allowing Madewell to achieve its full potential over the long-term," said Michael Nicholson, its interim CEO, in a statement Thursday.

Nicholson, who has served as the company's president and chief operating officer, was named interim CEO Thursday. Previously the company was led by a team of four executives, who comprised the office of the CEO. That structure has been in place since Nov. 2018.

Jack Weingart, co-managing partner of TPG Capital, was named to J. Crew's board, replacing Carrie Wheeler, who will be transitioning off the board after eight years with the company.

The CEO of Madewell, Libby Wadle, will continue with the company, as will Lynda Markoe, who is its chief administrative officer. Nicholson and Wadle will report to the board. The fourth member, Adam Brotman, chief experience officer, will resign for personal reasons. Brotman departs on April 19.

"With debt maturities on the horizon in 2021 and very high leverage, J.Crew faces an elevated risk of a second financial restructuring after its 2017 debt exchange," said Moody's Vice President Raya Sokolyanska, in an email.

Sokolyanska noted that Madewell generates less than a quarter of the company's revenue, but it has shown same-store sales growth at a time when J.Crew's brand was posting declines.

"If executed, a Madewell IPO could improve the capital structure and better position the company to address its debt," she said.

Last month, Reuters reported that J. Crew tapped restructuring lawyers for the second time in as many years to explore options for reworking its billions in debt, as the U.S. clothing chain struggles with falling sales and a dwindling cash pile.

J. Crew hired restructuring attorneys at Weil, Gotshal & Manges, the law firm that helped negotiate a previous debt workout for the company and most recently steered department store operator Sears through bankruptcy proceedings. A bankruptcy filing is not on the horizon for J. Crew, sources told Reuters.

J. Crew faces stiff competition in the retail space, from the rise of more casual athleisure apparel to e-commerce firms such as Amazon that have squeezed an array of traditional retailers.

The New York-based retailer has been private since 2011 when TPG Capital and Leonard Green & Partners completed a leveraged buyout for $3 billion.

J. Crew's announcement also comes of the heels of the highly anticipated Levi's IPO, which debuted on the New York Stock Exchange last month.