The brand says it is now ‘well positioned for long term growth’.
J Crew was one of the first major retailers to enter bankruptcy following the outbreak of the Coronavirus and the devastating effects it had on the retail industry and due to this, it’s journey through Chapter 11 bankruptcy has been relatively smooth in comparison to some other brands situations.
In a press release on Thursday, it was revealed that lenders have taken over controlling ownership, after J Crew’s reorganisation plan was approved by a federal bankruptcy court. Anchorage Capital Group is the investment firm that is now the retailer’s majority owner. Kevin Ulrich, Chief Executive Officer of Anchorage commented that the firm sees “an immense opportunity for growth and expansion at each brand.”
The plans include turning $1.6bn in debt into equity to put the lenders in charge of the company. It also provides new debt capital in the form of $400m in term loans and an asset-based exit facility worth $400M.
