Like a plot line ripped from a bad Hollywood film, America’s trusted preppy retailer for pastel cardigans and reasonably priced cashmere has finally dropped from its pedestal with a discrimination scandal.

J.Crew has been accused of employment prejudice from the civil-rights group Make the Road New York when it failed a “test” given by the group of choosing not to hire a transgender applicant on 24 separate occasions at various stores.

A transgender and a non-transgender applicant were sent out with identical credentials and the latter applicant was always offered the position. A rally was held this past Sunday at the Fifth Avenue location in New York after a complaint was filed with the New York Attorney General’s office. Company executives have yet to comment. The blogosphere is seemingly split on the scandal with some calling outrage and others claiming the store has the right to hire those they believe convey its carefully groomed image. What’s your take?