J. Crew Files For Bankruptcy As Covid Chaos Crushes Retailers

Aaaaaaand…it’s gone!

The New York-based clothing chain saw its parent company, Chinos Holdings, file for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia. As part of the reorganization, top creditors will seize control of the company by converting $1.65 billion of its debt into equity. The company secured $400 million in new financing from existing lenders, including Anchorage Capital Group, L.L.C., G.S.O. Capital Partners, and Davidson Kempner Capital Management L.P., among others.

In yet another blow to the global retail landscape, one of the most storied names in fashion retailing has bitten the dust! We presume J. Crew will be the first of many more to come, and following Eddy Lampert’s efforts to save the much larger Sears, in much less diabolical trading environments, the pungent aroma of yet another retailer death looms heavy in the air………Read more

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