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In addition to our normal news coverage, What Now Atlanta is tracking ways Atlanta’s businesses are adapting to the novel coronavirus and the challenges it brings to brick-and-mortars.
J.Crew Group Inc. on Monday filed for Chapter 11 bankruptcy protection, the clothing retailer, which includes the J.Crew and Madewell brands, announced in a press release on a website dedicated to the restructuring.
Parent company Chinos Holding filed the proceedings in federal bankruptcy court in the Eastern District of Virginia in response to the economic hardship brought on by the COVID-19 pandemic.
It is the first major retailer to do so, the Associated Press is reporting. Neiman Marcus and others have intentions to file but have not yet done so.
“This agreement with our lenders represents a critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J.Crew and further enhancing Madewell’s growth momentum,” Jan Singer, CEO of J.Crew Group, said in the announcement.
“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. 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.”
As part of the filing, J.Crew’s lenders agreed to convert $1.65 billion of its debt into equity. The deal also includes financing of $400 million from existing lending partners.
J. Crew has local Atlanta-area stores in Avalon in Alpharetta, Buckhead’s Lenox Square Mall, Perimeter Mall in Dunwoody, and Ponce City Market in Old Fourth Ward.
[Editor’s note: The novel coronavirus (COVID-19) pandemic is rapidly evolving as is its effect on Atlanta, and the City’s businesses and its residents. Click here for What Now Atlanta’s ongoing coverage of the crisis. For guidance and updates on the pandemic, please visit the C.D.C. website.]