J. Crew has filed for chapter, changing into the primary main US retailer to take action amid the continued international COVID-19 pandemic.
In a press release launched early Monday morning, Could 4, the retailer—made well-liked by the likes of Meghan Markle and Michelle Obama—stated it has filed for Chapter 11 chapter and is working with its lenders to transform $1.65 billion of the corporate’s debt into fairness.
Chapter 11 chapter is not precisely a loss of life sentence. As J. Crew chief govt officer Jan Singer defined within the assertion, whereas the corporate continues its restructuring course of, “we are going to proceed to supply our prospects with the distinctive merchandise and repair they count on from us, and we are going to proceed all day-to-day operations, albeit below these extraordinary COVID-19-related circumstances. As we glance to reopen our shops as rapidly and safely as attainable, this complete monetary restructuring ought to allow our enterprise and types to thrive for years to return.”
Madewell, J. Crew’s sister model helmed by Libby Wadle, will proceed its day-to-day operations with Wadle.
“J.Crew and Madewell are two traditional American manufacturers with deeply loyal prospects. We sit up for supporting Jan, Libby and the administration crew to acknowledge their full potential,” Kevin Ulrich, chief govt officer of Anchorage Capital Group, one in every of J. Crew’s lenders, added. “The numerous deleveraging contemplated by this settlement, coupled with J.Crew Group’s technique to strengthen its sturdy e-commerce platform to drive continued development in its direct-to-consumer phase, will place the Firm for future success.”
The information comes on the heels of a number of retailer closures and dips in gross sales from iconic retailers as a result of COVID-19 pandemic. Neiman Marcus, the beloved luxurious retailer could also be subsequent, in accordance with WWD.