J. Crew Group Inc. said Monday it has filed for Chapter 11 bankruptcy protection with $400 million in debtor-in-possession financing from its lenders to help it restructure. The retailer said it reached an agreement with lenders holding about 71% of its term loan and about 78% of its IPCo Notes, under which they will convert about $1.6 billion of the company's debt into equity. Lenders include Anchorage Capital Group, L.L.C., GSO Capital Partners and Davidson Kempner Capital Management LP, among others. As part of the agreement, the company's Madewell unit will remain part of J. Crew and will not be spun off, as previously planned. "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. J. Crew was taken private by private-equity firms TPG Capital and Leonard Green & Partners in 2010 for about $3 billion. The retailer, which is known for its preppy fashions, has struggled in recent years as its looks have gone in and out of style and its debt burden has weighed.
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May 04, 2020 at 05:14PM
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J. Crew files for Chapter 11 bankruptcy with $400 million in financing from lenders - MarketWatch
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