J. Crew was one of those fashion retailers, which had been struggling much before the pandemic crisis started and with the deadly onslaught of coronavirus early this year, the retailer finally broke its backbone – eventually leading to its filing for Chapter 11.
Amidst all these debts and struggles, the retailer had something to be happy about on Monday (10 August) when it announced that it has reached an agreement with its landlords of J. Crew and Madewell wherein it has got concessions.
The concessions include rent deferrals and one-time waivers that will now help the retailer save US $ 70 million this year and another US $ 60 million next year, provided sales complement the projection.
That’s saving US $ 130 million!
In a statement released to media, the retailer said that as on Sunday (9 July), it has reopened 95 per cent of its stores and reinstated most of its workers.
Notably, a committee of unsecured creditors recently claimed in the bankruptcy court that J. Crew and its secured lenders ‘have grossly undervalued’ the business while overvaluing certain collateral.
This, it said, led to shifting away of value from general unsecured creditors.
The J. Crew Group currently operates 178 J. Crew stores, 145 Madewell stores and 170 factory stores, and generated revenue of US $ 2.54 billion in 2019.
Lookout for this space to know what’s next at J. Crew!