Troubled national retailer J. Crew Group Inc. has filed suit in the New York Supreme Court’s commercial division against Wilmington Savings Fund Society, the successor agent to the retailer’s term loan agreement, in hopes of preventing any interference in its plans to change the company’s structure.
Last December, J. Crew moved some of its intellectual property into a separate subsidiary, J Crew Domestic Brand LLC., “in order to provide the company flexibility in connection with its evaluation of capital structure to strengthen the position of the entire corporate enterprise,” according to the firm.
Now, the company claims it must fight “actions taken by an ad hoc group of term loan lenders to disrupt the company’s evaluation of opportunities to enhance its capital structure,” and is asking the court to declare that the move was in keeping with the terms of term loan agreement.
Said Mike Nicholson, president, chief operating officer and chief financial officer of J. Crew: “The legal actions we are taking today are in keeping with our ongoing efforts to evaluate and pursue opportunities to strengthen our balance sheet as we position J. Crew for long-term growth.”