J. Crew files for bankruptcy protection in US
J.Crew Group has become the first large retailer in the US to file for bankruptcy protection during the coronavirus crisis.
The fashion retailer has commenced Chapter 11 proceedings in a court in the state of Virginia. In addition to J. Crew, the group also operates the Madewell brand.
J. Crew has also announced that it has reached an agreement with its lenders in which it will restructure its debt and deleverage its balance sheet. Under the terms of the agreement, the company’s lenders will convert approximately $1.65 billion of the group’s debt into equity.
Jan Singer, chief executive of J. Crew Group, said: “This agreement with our lenders represents a critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J.Crew and further enhancing Madewell’s growth momentum.
“Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary covid-19 related circumstances. As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come.”
The agreement will also include Madewell remaining part of J.Crew Group with Libby Wadle continuing in her role as chief executive of the brand.
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