A large retail chain J.Crew Group Inc. officially has declared bankruptcy caused by the spread of the coronavirus pandemics. The retailer was the first large American company forced to admit powerlessness over the circumstances.
Before filing a bankruptcy lawsuit, the company management agreed with creditors and bondholders. The essence of the transaction is that the debt of 2 million will be exchanged for an 82% stake in a new company established after the reorganization.
In March, J.Crew was forced to respond to the quarantine by closing five hundred stores. This measure deprived the company of about $ 900 million in revenue.
It should be noted that the retailer began to have difficulties long before the introduction of restrictive measures. For many years, sales have been falling; over the past fiscal year, the company has recorded a loss of $ 78.8 million.
If everything goes according to the plan, the company will be able to get rid of the ignoble status by mid-September of this year.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group