This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-52530002
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| J Crew files for bankruptcy protection | J Crew files for bankruptcy protection |
| (about 2 hours later) | |
| Fashion firm J Crew has filed for bankruptcy protection, making it the first big US retailer to fall victim to the coronavirus pandemic. | Fashion firm J Crew has filed for bankruptcy protection, making it the first big US retailer to fall victim to the coronavirus pandemic. |
| Under the terms of the filing, its main creditors are set to take control of the group in exchange for cancelling debts of $1.65bn (£1.3bn). | |
| They are also providing about $400m of fresh financing to keep J Crew's operations afloat. | They are also providing about $400m of fresh financing to keep J Crew's operations afloat. |
| Its 500 stores have been closed by the pandemic and some will not reopen. | Its 500 stores have been closed by the pandemic and some will not reopen. |
| However, the firm has not yet disclosed how many outlets will disappear. | However, the firm has not yet disclosed how many outlets will disappear. |
| Control of the group will now pass into the hands of Anchorage Capital Group, GSO Capital Partners and Davidson Kempner Capital Management, which hold large amounts of its debt. | Control of the group will now pass into the hands of Anchorage Capital Group, GSO Capital Partners and Davidson Kempner Capital Management, which hold large amounts of its debt. |
| As well as J Crew, the group also owns denim clothing specialist Madewell, which it had planned to spin off as a separate entity before the outbreak of the virus. | As well as J Crew, the group also owns denim clothing specialist Madewell, which it had planned to spin off as a separate entity before the outbreak of the virus. |
| J Crew chief executive Jan Singer described the move as a "comprehensive financial restructuring" aimed at allowing the business "to thrive for years to come". | J Crew chief executive Jan Singer described the move as a "comprehensive financial restructuring" aimed at allowing the business "to thrive for years to come". |
| "Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary Covid-19-related circumstances," she added. | "Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary Covid-19-related circumstances," she added. |
| Classic brands | |
| Kevin Ulrich, chief executive of Anchorage Capital Group, said: "J Crew and Madewell are two classic American brands with deeply loyal customers. | Kevin Ulrich, chief executive of Anchorage Capital Group, said: "J Crew and Madewell are two classic American brands with deeply loyal customers. |
| "The significant deleveraging contemplated by this agreement, coupled with J Crew Group's strategy to strengthen its robust e-commerce platform to drive continued growth in its direct-to-consumer segment, will position the company for future success," | "The significant deleveraging contemplated by this agreement, coupled with J Crew Group's strategy to strengthen its robust e-commerce platform to drive continued growth in its direct-to-consumer segment, will position the company for future success," |
| Even before the advent of coronavirus, big retailers were suffering in the US, with the rise of online shopping and the decline of shopping malls taking their toll. | |
| Department store chains including Sears and JC Penney - long seen as bellwethers of US retail - have been struggling to survive in recent years, with clothing sales falling particularly sharply. | |
| Sears had 700 stores across the US when it filed for bankruptcy protection in 2018. Although it survived, it now has fewer than 200 outlets. | |
| JC Penney has been ailing for some time. It used to have more than 1,000 locations, but now has about 850. |