J. Crew is preparing to file for bankruptcy, possibly as soon as this weekend, people with knowledge of the matter told CNBC on Thursday.
The New York-based retailer is trying to secure $400 million in financing in order to continue operations in bankruptcy, CNBC reports. The company had been struggling even before the coronavirus pandemic forced it to close its stores in March, although it does have a strong e-commerce business.
J. Crew wanted to take its Madewell subsidiary public in order to help pay down its debt load, but that plan has been abandoned, people familiar with the matter said. In the fiscal year ending Feb. 1, J. Crew had $2.5 billion in sales, and Moody's estimates the company had about $93 million in total liquidity as of February. There are 182 J. Crew and 140 Madewell retail locations.
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