J. Jill, the American womenswear retailer, in a statement, said on Tuesday (1 September) that it will file for Chapter 11 if it does not succeed in getting lenders holding 95 per cent of its term loans.
And there isn’t much time for the fashion retailer!
If the retailer fails to get permission for the same from majority of its lenders by next Friday (11 September), it will file for bankruptcy.
J. Jill has struck an agreement with lenders holding 70 per cent of the debt to extend some debt maturities to 2024, besides granting a financial covenant holiday and providing at least US $ 15 million of new cash as a junior term loan.
If and when the fashion retailer files for Chapter 11, it has an accord with lenders to receive at least US $ 75 million of debtor-in-possession financing that will convert to a term loan.
Here it is pertinent to state that lenders had agreed to hold off on taking immediate action against the retailer after the latter had violated loan terms back in June.
As it’s been the case with many fashion retailers, J. Jill too has been battling woes much before the pandemic started. However, ever since the coronavirus hit the world, the retailer has been fast sinking eventually leading it to a position where it is currently today.
Also Read: J. Jill struggling to survive; owes creditors US $ 270 million
J. Jill is known for its unique and fashionable apparels and accessories and has its headquarters at Quincy, Massachusetts.
