Under the ruthless blow of the COVID-19 epidemic and the downturn in the offline consumer market, many brands have chosen to file for bankruptcy and lay off employees to preserve the development of their brands.
It is not uncommon for us to see this kind of news on the Internet, but it is possible to recover after bankruptcy. It is rare to see a recovery go against the trend. Recently, a fashion brand successfully recovered from bankruptcy and reorganization and got out of trouble after four months of hard work.
Previously, due to the raging epidemic in the offline consumer market, most brands had to close a large number of physical sales stores. Development also stalled for a time, and the American fashion brand J.Crew also declared bankruptcy in May due to facing severe challenges.
But thanks to the group’s unremitting efforts, it has developed long-term growth plans after advancing its restructuring. After several months of development, J.Crew has officially emerged from Chapter 11 bankruptcy in the United States.
J.Crew Group CEO Jan Singer said: “We are very pleased to have completed this process quickly and we thank our customers, partners, suppliers and new owners. for their dedication and support over the past few months. As a dynamic company, we are committed to serving the changing lifestyles and styles of today’s diverse consumers and providing long-term, sustainable products.”
It also added: “Going forward, our strategy will focus on three core pillars Top: Offering a curated selection of iconic, timeless products; elevating the brand experience to deepen our relationships with customers; and prioritizing contactless shopping.”
In the process of restructuring , after J.Crew equitized more than $1.6 billion of insured debt, Anchorage Capital Group became the new major shareholder of the brand. Along with its new ownership, the fashion brand secured a $400 million exit term loan from Anchorage Capital Group and various institutions. At the same time, it secured a new $400 million ABL credit facility from Bank of America.
Public information shows: J.Crew Group is an internationally recognized omni-channel retailer. Its products include men’s, women’s and children’s clothing, shoes and accessories. It has occupied a place in the local market with its high-quality fabrics and exquisite workmanship. It is now one of the mid-to-high-end brands pursued by young people in the United States.
Although the epidemic has gradually stabilized, the sluggish consumer market has not substantially changed. With limited passenger flow, the recovery of various brands still has a long way to go. Some way to go. But for J.Crew, being able to get out of the cloud of bankruptcy is already a very great feat. Looking to the future, we also look forward to even more exciting performances from the brand. </p
