J Crew exits from bankruptcy under new ownership

J Crew has exited from Chapter 11 bankruptcy protection having completed its financial restructuring and now says it is “well-positioned for long term growth.”

The company filed for Chapter 11 bankruptcy protection in May after losing its way in recent years and struggling financially under heavy debts. Its woes had been exacerbated by the global COVID-19 pandemic.

The completion of the retailer's restructuring process has meant J Crew has swapped $1.6 billion in debt with Anchorage Capital Group LLC, which is now the majority owner of the company.

J Crew also has a $400 million (£312m) exit term loan from Anchorage, GSO Capital Partners LP, Davidson Kempner Capital Management and other structures, due in 2027, and a $400 million asset-based lending credit facility due in 2025 from Bank of America.

Chief executive officer of J Crew Group, Jan Singer, said: “Looking forward, our strategy is focused on three core pillars: delivering a focused selection of iconic, timeless products; elevating the brand experience to deepen our relationship with customers; and prioritizing frictionless shopping."

"As a reinvigorated company, we are committed to serving the changing life and style of today's multifaceted consumer and to delivering long term, sustainable results."

Anchorage chief executive, Kevin Ulrich, added: “We see an immense opportunity for growth and expansion at [J Crew] and are confident [in its] existing robust direct-to-consumer and e-commerce platforms will position the company to succeed in today's evolving retail landscape.”

In the UK, J Crew has a flagship store on Regent Street as well as branches in Chelsea, Marylebone, Bloomsbury and Shoreditch. Its younger, denim-focused sister brand Madewell signed a distribution deal in the UK with department store John Lewis in March 2018.