J.Crew Group, Inc. has just announced an agreement that has been reached an agreement that will poise themselves and Madewell for long-term successes. Under the new Transaction Support Agreement, lenders for the company will convert approx. $1.65 billion in debt into equity.
According to a statement from Jan Singer, Chief Executive Officer, J.Crew Group, "This agreement with our lenders represents a critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J.Crew and further enhancing Madewell's growth momentum. 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. As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come."
"J.Crew and Madewell are two classic American brands with deeply loyal customers," said Chief Executive Officer of Anchorage Capital Group, Kevin Ulrich, "We look forward to supporting Jan, Libby and the management team to recognize their full potential. 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."
About J.Crew Group, Inc.
J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women's, men's and children's apparel, shoes and accessories. As of May 4, 2020, the Company operates 181 J.Crew retail stores, 140 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com and 170 factory stores. Certain product, press release and SEC filing information concerning the Company are available at the Company's website www.jcrew.com.
About Anchorage Capital Group, L.L.C.
Anchorage Capital Group, L.L.C. is a New York-based
Information originally sourced from PRNewswire.