J. Crew Files for Bankruptcy Protection
- Preppy clothing retailer files for Chapter 11 in Virginia
- Company reaches deal with lenders to swap debt for equity
A pedestrian passes in front of a J. Crew Group Inc. store in the Brooklyn borough of New York.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
J. Crew Group Inc. filed for bankruptcy with plans to hand control to its lenders, unable to revive its preppy clothing line amid the pandemic and crushed by debt rooted in a long-ago leveraged buyout.
While J. Crew’s struggles pre-dated the coronavirus outbreak, it’s the first major retailer to go bankrupt during the ensuing economic shutdown, which has pushed dozens of chains to the brink of failure. Neiman Marcus Group Inc. and J.C. Penney Co. are among merchants that could be days away from default.