J.Crew Group Inc. announced that the United States Bankruptcy Court for the Eastern District of Virginia has confirmed the company’s plan of reorganization. As a result, the company expects to emerge from Chapter 11 in early September, after it has satisfied the customary conditions to the effectiveness of the plan.
The plan, which has widespread support across the company’s stakeholders, will equitize over $1.6 billion of secured indebtedness and provide a $400 million exit ABL facility, as well as $400 million of new term loans.
“The confirmation of our plan of reorganization is another significant milestone in our path to transforming our business to drive long-term, sustainable growth for J.Crew and further advance Madewell’s growth momentum,” said Jan Singer, chief executive officer of J.Crew Group. “Throughout the financial restructuring process, we have continued to honor our longstanding commitment to our customers of providing them with the products they love and the service they have come to expect. We thank our associates, customers, vendors, landlords and lenders for their support, which has enabled us to efficiently move through this process while navigating our business through the current environment. As we move towards emergence, we look forward to continuing to position J.Crew and Madewell for long-term success.”
