- Crew Group, Inc. has filed for bankrupty, the agreement with its lenders that hold 71% of its Term Loan and 78% of its IPCo Notes, including financial sponsors as the company will restructure its debt and deleverage its balance sheet. J. Crew will convert USD 1.65 Billion of the company’s debt into equity.
Chinos Holdings, Inc., parent company and affiliates of J. Crew Group, Inc. have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in court for the Eastern District of Virginia. A debtor-in-possession financing facility has been secured of USD 400 Million and committed exit financing providing by current lenders Anchorage Capital Group, L.L.C., GSO Capital Partners and Davidson Kempner Capital Management LP, including others.
“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,” said Jan Singer, Chief Executive Officer, J.Crew Group. “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.”
“J.Crew and Madewell are two classic American brands with deeply loyal customers. We look forward to supporting Jan, Libby and the management team to recognize their full potential. The significant deleveraging contemplated by this agreement, coupled with J.Crew Group’s strategy to strengthen its robust e-commerce platform to drive continued growth in its direct-to-consumer segment, will position the Company for future success,” said Kevin Ulrich, Chief Executive Officer of Anchorage Capital Group.