New York City — J.Crew Group, Inc. has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia.
The company has secured commitments for a debtor-in-possession financing facility of $400 million and committed exit financing provided by existing lenders Anchorage Capital Group, L.L.C., GSO Capital Partners and Davidson Kempner Capital Management LP, among others. Subject to court approval, the DIP financing, combined with the company’s projected cash flows, is expected to support its operations during the restructuring process.
Madewell will remain part of J.Crew Group, Inc. Libby Wadle will continue in her role as CEO of Madewell.
“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,” says 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.”
Weil, Gotshal & Manges LLP is serving as legal counsel, Lazard is serving as investment banker and AlixPartners, LLP is serving as restructuring advisor to J.Crew Group, Inc. Anchorage Capital Group, a New York-based registered investment adviser founded in 2003, and other members of an ad hoc committee are represented by Milbank LLP as legal counsel and PJT Partners LP as investment banker.
J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of May 4, 2020, the company operates 181 J.Crew retail stores, 140 Madewell stores, www.jcrew.com, www.jcrewfactory.com, www.madewell.com and 170 factory stores.
SOURCE: J.Crew Group, Inc.