August 25, 2020 | 2:14pm
J.Crew Group mentioned Tuesday it expects to emerge from Chapter 11 in early September, after a chapter courtroom accepted its restructuring plan.
The plan, authorized 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 support.
The New York-based chain, recognized for preppy clothes at instances worn by former first girl Michelle Obama, filed for chapter earlier this 12 months and was quickly joined by friends corresponding 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 personal by TPG and Leonard Inexperienced & Companions in a roughly $three billion leveraged buyout. Years later in 2017, the retailer averted chapter in a cope with collectors that lowered complete debt and pushed due dates on obligations.