J.Crew Files for Chapter 11 Protection
Apparel retailer J.Crew, headquartered in Lower Manhattan, filed for Chapter 11 protection Monday. The filing in U.S. Bankruptcy Court for the Eastern District of Virginia, reportedly the first by a national retailer as a consequence of the COVID-19 pandemic, came as J.Crew reached an agreement with lenders to restructure its debt and deleverage its balance sheet.
Under the terms of the agreement, the company’s lenders will convert approximately $1.65 billion of J.Crew’s debt into equity. The company secured commitments for a debtor-in-possession financing facility of $400 million.
“As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come,” said Jan Singer, CEO of J.Crew Group.
Weil, Gotshal & Manges LLP is serving as legal counsel, Lazard is serving as investment banker and AlixPartners, LLP is serving as restructuring advisor to J.Crew.
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