The U.S. Bankruptcy Court for the Eastern District of Virginia granted J.Crew Group interim approval for all of the first day motions related to its Chapter 11 restructuring. The approved motions will support the company’s ongoing operations during the financial restructuring process.
The court granted J.Crew Group access to a debtor-in-possession financing facility of $400 million provided by existing lenders Anchorage Capital Group, GSO Capital Partners and Davidson Kempner Capital Management, among others, which, combined with the company’s projected cash flows, will support operations during the restructuring process. The court also authorized J. Crew Group to continue paying employee wages and benefits, as well as honor all customer programs, including its loyalty programs, gift cards, returns and exchanges. J.Crew Group will pay vendors for goods and services provided after the filing date on normal terms.
“The court’s approval of our first day motions is an important step in our financial restructuring. At J.Crew Group, our customers are at the center of everything we do, and during this process this commitment doesn’t change. We remain fully operational, providing our customers with the iconic items they love and the great service they expect,” Jan Singer, CEO of J.Crew Group, said. “Solidifying our financial foundation enables us to emerge healthier and stronger, positioning our business and brands to thrive for years to come. I would like to thank our associates, customers, vendors and partners for their continued support as we look to complete our restructuring as quickly as possible.”
As previously reported, J. Crew Group reached an agreement with its lenders holding approximately 71% of its term loan and approximately 78% of its IPCo notes, as well as with its financial sponsors, under which the company will restructure its debt and deleverage its balance sheet.
J.Crew Group is an omni-channel retailer of women’s, men’s and children’s apparel, shoes and accessories.