J.Crew has filed for bankruptcy to eliminate $1.65 billion in debt, releasing an official announcement on the company's website. J.Crew is the first major US retailer to announce bankruptcy during the COVID-19 pandemic, which has been affecting businesses large and small. But before you panic, wondering where you're going to score that perfect gingham swimsuit for summer or those trusty, well-tailored suit separates, know this: J.Crew is not planning on closing its stores, and Madewell is safe, too. J.Crew and Madewell will continue to monitor the coronavirus and reopen retail locations once it is safe to do so. Madewell is still set to remain a part of J.Crew Group, Inc, which, as of May 4, owns and operates 181 J.Crew stores, 140 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com, and 170 factory stores.
Watch this space for more information, and in the meantime, read a message from Jan Singer, chief executive officer of 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."