J. Crew files for bankruptcy protection

New York-based clothing chain has fallen on hard times amid COVID-19 shutdown

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J. Crew is filed for bankruptcy protection on Monday in the wake of the coronavirus pandemic, which has shuttered businesses across the U.S., according to Reuters.

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The New York-based clothing chain had recently fallen on hard times, facing debt and sales struggles before the COVID-19 shutdown exacerbated that with store closings. J. Crew launched Madewell in 2016, a chain it had planned to spin off in an IPO to help pay down part of its 1.7 billion debt, according to a report in the Wall Street Journal.

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While total revenue for the company increased by 2 percent to $2,540.1 million in fiscal 2019, J. Crew said in its fourth-quarter earnings report that sales decreased 4 percent to $1,707.7 million.

The company filed for bankrupcty in a Virgina court.

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