J.Crew Files for Bankruptcy
Via Mike Mozart of JeepersMedia
J.Crew Group, which operates several clothing stores in the Washington, D.C. area, has filed for bankruptcy in an attempt to restructure its debt.
In Montgomery County, J.Crew has a store in the Montgomery Mall in Bethesda and a factory outlet at Clarksburg Premium Outlets.
The company announced Monday that it had reached a deal with its lender to convert $1.65 billion of debt into equity.
While its stores are temporarily closed due to the novel coronavirus, its clothing, shoes and accessories are available for purchase on line.
In a letter to customers, J.Crew Group, the parent company of J.Crew and Madewell, explained that it reworked its debt “to position our business for long-term success.”
Despite its Chapter 11 bankruptcy filing, the company is “fully operational throughout this restructuring process,” according to the letter. J.Crew is looking forward to reopening its stores when the Centers for Disease Control announces that it is safe to do so, it also stated in the letter.
“We expect all customer programs, including our loyalty programs, gift cards, returns and exchanges, among others, will continue as usual,” it said in the letter, which also stated that the company is “committed to bringing you styles you love for years to come.”
“Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances,” said Jan Singer, CEO of J.Crew Group.
The clothing retailer voluntarily filed for bankruptcy in federal court in the Eastern District of Virginia. It has 181 J.Crew retail stores and 140 factory stores. Its on-line business represents more than 50 percent of total revenues.
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