J Crew filed for bankruptcy protection on Monday, amid retail closures in response to the COVID-19 pandemic.
The New York-based clothing chain filed for relief under Chapter 11 of the US Bankruptcy Code in Virginia, adding that its lenders will get control and convert approximately $1.65 billion of its debt into equity.
Jan Singer, chief executive officer of J Crew Group, said the agreement with lenders is a “critical milestone” in the ongoing process to transform their business.
“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,” he said.
“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.”
J Crew Group, Inc. is an internationally recognized omnichannel retailer of women’s, men’s, and children’s apparel, shoes, and accessories.
As of May 4, 2020, J Crew operates 181 J.Crew retail stores, 140 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com, and 170 factory stores.