J. Crew to exit bankruptcy in early September
US fashion retailer J. Crew has gained approval from a bankruptcy court in the state of Virginia for its restructuring plan.
As a result, the company expects to emerge from Chapter 11 bankruptcy in early September.
The plan, which J. Crew says is widely supported by its stakeholders, will equitise over $1.6 billion of secured indebtedness, and provide $400 million in an asset based loan facility and $400 million worth of new financial aid.
J. Crew was one of the first major US retailers to file for bankruptcy when the Covid-19 pandemic kicked in.
In a statement, J. Crew chief executive Jan Singer said: “The confirmation of our plan of reorganisation is another significant milestone in our path to transforming our business to drive long-term, sustainable growth for J.Crew and further advance Madewell’s growth momentum,
“Throughout the financial restructuring process, we have continued to honour our longstanding commitment to our customers of providing them with the products they love and the service they have come to expect.
“We thank our associates, customers, vendors, landlords and lenders for their support, which has enabled us to efficiently move through this process while navigating our business through the current environment. As we move towards emergence, we look forward to continuing to position J.Crew and Madewell for long-term success.”
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