J. Crew emerges from bankruptcy 'reinvigorated'
Anchorage Capital Group, L.L.C. became the majority owner of the New York-based clothing chain
Struggling fashion brand J. Crew emerged from bankruptcy this week with a lighter debt load and "well-positioned for long-term growth," its leadership team says.
In the restructuring, New York-based J.Crew converted more than $1.6 billion of debt to stock and Anchorage Capital Group became the majority owner.
J. CREW FILES FOR BANKRUPTCY PROTECTION
The retailer now has $400 million in capital, obtained through a term loan due in 2027, and another $400 million through an asset-backed loan due in 2025.
"As a reinvigorated company, we are committed to serving the changing life and style of today's multifaceted consumer and to delivering long term, sustainable results," J.Crew Group CEO Jan Singer said.
J.Crew store in Manhattan. (Xinhua/Wang Ying via Getty Images)
Moving forward, Singer says the company's strategy will be built around "delivering a focused selection" of products and elevating its brand.
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In May, J. Crew was the first major retailer to file for bankruptcy protection since the coronavirus pandemic forced most stores across the United States to close their doors. It was in trouble before that, however.
The chain had grown from a preppy 1990s fashion staple to an “it” brand worn by former first lady Michelle Obama and featured at New York Fashion Week before introducing styles in recent years that failed to appeal to its market.
The company's roots date to 1947, when Mitchell Cinader and Saul Charles founded Popular Merchandise Inc., which sold low-priced women’s clothing. It was renamed J.Crew in 1983 and retooled as a preppy catalog to compete with those published by Lands’ End and L.L Bean.
The Associated Press contributed to this report.