Multi-brand apparel and accessory retailer J.Crew Group says that it expects to come out of bankruptcy in the upcoming month. The company said a court accepted its debt restructuring plan hence it’s looking forward to emerge from chapter 11 bankruptcy in the beginning of next month.
In the restructuring proposal approved by a Virginia federal court, the company will convert more than $1.6 billion of debt into equity. Further it will provide $400 million in asset based loan and an additional $400 million to strengthen its balance sheet.
The New York based company filed for bankruptcy earlier in the year after the global pandemic brought it down to its feet. Things went south for the company really fast forcing it to close its J. Crew factory, Madawell Stores and 500 J. Crew.
Due to the pandemic also, the company has been forced to sideline its initial public offering plans.