J. Crew preparing for bankruptcy filing: Report
Privately held fashion company J. Crew Group Inc is preparing for a bankruptcy filing that could come as soon as this weekend, CNBC reported on Thursday, citing people familiar with the matter.
The company is working to secure $400 million in financing to fund operations in bankruptcy, the report added, cautioning that timing could still slip, and plans are not yet finalized.
The company has been grappling with competition from online firms such as Amazon.com Inc that have been eating into traditional retailers’ market share.
The company was acquired by TPG Capital and Leonard Green & Partners for $3 billion in 2011.
J. Crew joins a list of retailers, including Neiman Marcus and J.C. Penney, that were already struggling prior to the p
but appear brought to the brink by the coronavirus' devastating impact on the economy. America's multi-year gross domestic product expansion came to a
c
end in the first quarter, as the economy contracted 4.8%, while more than 30 million people have filed for unemployment benefits.
Still, unlike department stores, industry
analysts say companies with strong brands, like J. Crew and its sister brand Madewell, may be best positioned to survive the retail upheaval. J. Crew has
built up an e-commerce business and can sell directly to shoppers without relying on third-party sellers, or in-store shopping.
J. Crew had begun to see "meaningful improvement" in its 2019 business, according to Moody's, correcting from execution issues the year prior.
