J. Crew Files For Bankruptcy Amid Pandemic, Will Reopen Stores Once Lockdowns Lift

TOPLINE

Preppy retailer J. Crew filed for Chapter 11 bankruptcy protection Monday morning, according to multiple reports, becoming the first major retailer to do so amid the coronavirus pandemic, which forced businesses to shut their doors out of safety—and all but eliminated brick-and-mortar sales.

KEY FACTS

Crucial quote

“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,” said J. Crew CEO Jan Singer in a press release. “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.”

Big number

Between $1 billion and $10 billion. That’s how much money J. Crew owes⁠—to over 25,000 creditors⁠—according to its bankruptcy filing.  

Key background

J. Crew began life in 1947 as a women’s apparel catalog titled Popular Merchandise. In 1983, the company was renamed; the first J. Crew store, in Manhattan, opened in 1989. J. Crew became a go-to for preppy sweaters, chinos, work shirts and other trappings. The company’s fashions grew in popularity under the stewardship of creative director Jenna Lyons and chief executive Mickey Drexler. In 2011, J. Crew went private in a $3 billion leveraged buyout. It’s also posted losses for the last five years. Lyons departed in 2017, while Drexler left in 2019. Singer, a former Victoria’s Secret executive, was named J. Crew’s CEO in January 2020.

Further reading

Coronavirus Bankruptcy Tracker: These Major Companies Are Failing Amid The Shutdown (Forbes)

J.Crew Files for Bankruptcy Protection, Reaches Debt-Swap Deal (Wall Street Journal)

J. Crew files for bankruptcy, the first national retail casualty of the coronavirus pandemic (Washington Post)

Madewell Files For IPO In Split From J.Crew (Forbes)

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