The company expects to emerge from Chapter 11 bankruptcy in early September.
At the onset of the Covid-19 pandemic, J.Crew was one of the first major US retailers to file for bankruptcy and since has been looking to restructure the brand to offset this. J.Crew has now gained approval from a bankruptcy court in the state of Virginia for its restructuring plans which will equitse over $1.6bn of secured indebtedness and provides $400M in both an asset based loan facility and new financial aid.
In a statement, Jan Singer, Chief Executive has commented: “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.”
“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.”
