J. Crew files for bankruptcy protection

J. Crew on Monday became the first major retailer to file for bankruptcy protection during the coronavirus crisis, The New York Times reports. The clothing chain said its parent company, Chinos Holdings, had submitted the paperwork for Chapter 11 protection in a federal bankruptcy court in Virginia.

The company reached a debt-swap deal with creditors to convert $1.65 billion of its debt into equity. J. Crew said online sales would continue as normal during the bankruptcy proceedings, and that it would reopen its J. Crew and Madewell stores after local lockdowns are lifted.

The company plans to put a possible spinoff of the Madewell brand into a public company. The pandemic has hit retailers hard as shoppers have been forced to stay home. Clothing and accessory sales fell by more than half in March. Other major retailers, including Neiman Marcus and J.C. Penney, are struggling during the pandemic, according to the Times.

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