J. Crew Group Inc. filed for bankruptcy, unable to revive flagging sales of its preppy clothing line amid the coronavirus pandemic and crushed by debt rooted in a long-ago leveraged buyout.
The retail chain had obligations of almost $1.7 billion as of Feb. 1. The bankruptcy petition was submitted to the U.S. Eastern District of Virginia.
J. Crew agreed with a majority of creditors to convert $1.65 billion of debt into equity, and secured $400 million of new money from funds including Anchorage Capital Group, GSO Capital Partners and Davidson Kempner Capital Management, the company said on statement on Monday.
