J.Crew Group, which operates the J.Crew and Madewell brands, has become the first national US retailer to file for bankruptcy protection since the coronavirus pandemic forced a wave of store closures. Now, where will we buy our v-neck sweaters??
The clothing retailer said Monday that it has filed to begin Chapter 11 proceedings in federal bankruptcy court in the Eastern District of Virginia. The company also said it had reached a deal with its lenders to convert about $1.65 billion of debt into equity.
A bankruptcy filing doesn’t necessarily mean a company will go out of business. Many firms use bankruptcy to shed debt and other liabilities they can’t afford while closing unprofitable operations and locations.
Don’t worry, you’ll still be able to put some prep in your step. J.Crew expects to stay in business and emerge from bankruptcy as a profitable company.
“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,” J.Crew Group CEO Jan Singer said on Monday.