Clothing apparel company J. Crew filed for bankruptcy today, marking the first major retail bankruptcy of the coronavirus pandemic.
The company said it has reached a deal to convert $1.65bn of its debt to equity. It has secured $400M in financing from existing lenders, Anchorage Capital Group, GSO Capital Partners and Davidson Kempner Capital Management, to help fund operations through bankruptcy.
The New York-based retailer had already been struggling under a heavy debt load and sales challenges, as it suffered criticism that it fell out of touch with its once-loyal customers. In the past few years, the brand lost both its long time Design Chief, Jenna Lyons, and famed retail executive Mickey Drexler, who was its CEO.
Those challenges have been exacerbated by the coronavirus pandemic that has forced stores to shutter, throwing the retail industry into a state of disarray.
