August 25, 2020 | 2:14pm
J.Crew Group stated Tuesday it expects to emerge from Chapter 11 in early September, after a chapter courtroom accepted its restructuring plan.
The plan, accredited by a Virginia federal courtroom, will equitize over $1.6 billion of secured debt, and supply for $400 million in asset-based loans in addition to $400 million of contemporary monetary help.
The New York-based chain, identified for preppy clothes at occasions worn by former first woman Michelle Obama, filed for chapter earlier this yr and was quickly joined by friends akin to Neiman Marcus Group, J.C. Penney and Brooks Brothers.
The corporate was pressured by the virus outbreak to quickly shut its practically 500 J. Crew, J. Crew Manufacturing unit and Madewell shops, and in addition shelve its plans for an preliminary public providing of its Madewell enterprise.
In 2011, J. Crew was taken non-public by TPG and Leonard Inexperienced & Companions in a roughly $three billion leveraged buyout. Years later in 2017, the retailer averted chapter in a take care of collectors that diminished complete debt and pushed due dates on obligations.