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J.Jill keeps bankruptcy at bay

The struggling women’s apparel retailer has reached an agreement with lenders to extend a forbearance period until 23 July.

“We remain engaged in productive discussions with our lenders, and today, our lenders extended the forbearance period under the existing forbearance agreement, which provides additional time for us to complete negotiations,” stated interim CEO Jim Scully. “We are making progress with the negotiations and expect a resolution soon.”

The business entered the forbearance agreements in mid-June after falling out of compliance with certain covenants on its asset-based lending and term loan credit facilities amid the Covid-19 pandemic. “The uncertainty created by recent events generated scenarios that raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued,” the company stated.

J. Jill was struggling going into the pandemic. Same-store sales fell 3.6 per cent in 2019 amid a $128.6M net loss for 2019, compared to a $30.5M profit the year before.