J.Crew has filed for bankruptcy
By David Moin and Evan Clark
with contributions from Sindhu Sundar, Jean E. Palmieri
on May 5, 2020
J. Crew Group ended on brand — classic with a twist.
While the preppy mainstay’s bankruptcy on Monday fit neatly into a long-running theme that’s seen private equity firms hobble many of their retail properties with heavy debt loads and at-times inconsistent management, it also speaks clearly to just how hard fashion has been hit by the coronavirus shutdown.
In order for a reorganization plan to be approved, a company has to show that it is more likely than not to stay out of bankruptcy going forward. Large employers like J. Crew may be better positioned to convince a judge to approve a plan when so many jobs are on the line, experts said.
“It’s a fast timeline, but it’s a reasonable timeline given the agreements that they have in place,” said Rasmussen.
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