SEND US A TIP!CLICK OR 844.412.5278

J. Crew Files For Bankruptcy Amid The Coronavirus Pandemic Financial Crisis

Gettyimages | Bill Tompkins
By Clark Sparky

J. Crew has become the first major national retail chain to apply for bankruptcy amid the coronavirus pandemic. The crisis has ravaged the economy, and retail stores have been hit especially hard with people unable to shop in their stores.

Giphy | Workaholics

Chief Executive Officer of the J.Crew Group, which also owns Madewell, Jan Singer said, "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. 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 operates roughly 450 stores nationwide and employs nearly 10,000 workers.

"J.Crew and Madewell are two classic American brands with deeply loyal customers," added Kevin Ulrich, Chief Executive Officer of Anchorage Capital Group. "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."

Gettyimages | Spencer Platt

Another major retailer hit hard by the pandemic has been Best Buy, which had to furlough about 51,000 workers but has not yet filed for bankruptcy protection.

Best Buy CEO Corie Barry said in a statement to employees last month: "The situation we are all facing as a result of the COVID-19 pandemic is truly unprecedented," Barry said. "As we previously communicated, we made the decision for the health and safety of our customers and employees to shift our stores to a temporary enhanced curbside service-only model starting March 22. At that time, we also suspended all in-home delivery, installation and repairs. I am so incredibly proud of our teams' execution – they seamlessly implemented a new and highly effective operating model in a matter of 48 hours across our entire store base."

"The situation remains very fluid and there is still a great deal of uncertainty, particularly as it relates to depth and duration of store closures and consumer confidence over time," she continued. "We are taking the steps necessary to resume providing our customers in-home services in the near future, keeping in mind our overriding priority on the safety of our employees and customers. We are also preparing to re-open stores to customers as soon as it is safe to do so, with timing likely to vary at state and local levels.

"In the meantime, as you would expect, we are focused on making the difficult decisions necessary to ensure that at the end of this crisis Best Buy remains a strong, vibrant company."

Load Comments
Next Article