J.Crew Group said Tuesday that it expects to emerge from Chapter 11 in early September after a bankruptcy court accepted its restructuring plan.
The plan, approved by a Virginia federal court, will equitize over $1.6 billion of secured debt, and provide for $400 million in asset-based loans as well as $400 million of fresh financial aid.
“The confirmation of our plan of reorganization is another significant milestone in our path to transforming our business to drive long-term, sustainable growth for J.Crew and further advance Madewell’s growth momentum,” said Jan Singer, chief executive officer of J.Crew Group. “Throughout the financial restructuring process, we have continued to honor our longstanding commitment to our customers of providing them with the products they love and the service they have come to expect. We thank our associates, customers, vendors, landlords, and lenders for their support, which has enabled us to efficiently move through this process while navigating our business through the current environment. As we move towards emergence, we look forward to continuing to position J.Crew and Madewell for long-term success.”
After filing for bankruptcy in May, the company has been focused on what it calls a “real estate optimization strategy” and working with landlords to improve store lease terms. Earlier this month, the retailer said it saved around $130 million in rent after renegotiating it store leases with landlords across the U.S.
As of Tuesday, the company operates 170 J.Crew retail stores, 141 Madewell stores, and 170 J.Crew Factory stores in nearly every state in the United States, and also maintains J.Crew, Madewell, and J.Crew Factory websites.