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J.Crew Lease Agreements Will Save Retailer $130M
J.Crew Group said Monday it had reached agreements with landlords to improve lease terms on its J.Crew and Madewell store portfolio. The retailer, which filed for Chapter 11 protection in May, expects to realize “significant lease savings” over the remaining terms of these leases.
Through this process, the New York City-based company expects to achieve cash savings of approximately $70 million, which includes the benefit of one-time waivers and deferrals, in 2020, and approximately $60 million in 2021, assuming sales are in line with projections.
The company has re-opened 458 stores, including its Midtown Manhattan locations, representing approximately 95% of its total store fleet. J.Crew temporarily closed all of its locations due to public health restrictions related to COVID-19.
J.Crew said it would continue to take “a careful approach with respect to ongoing store operations to ensure compliance with appropriate safety protocols in line with CDC guidelines and government regulations.”
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