J. Crew Group has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia. The company announced they’ve reached an agreement with its lenders holding approximately 71% of its Term Loan and approximately 78% of its IPCo Notes, as well as with its financial sponsors, under which the Company will restructure its debt and deleverage its balance sheet. Madewell will also remain part of J. Crew Group with Libby Wadle continuing in her role as CEO.
The brand will continue their e-commerce business during the bankruptcy case and stores are expected to reopen when lockdowns are lifted. It’s the first major retailer to file for bankruptcy during the coronavirus pandemic.