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J. Crew is Preparing for Bankruptcy Proceedings



J.Crew, an American chain of stores, is preparing to file a bankruptcy petition, which may be submitted as soon as possible.
J.Crew

The possibility of imminent bankruptcy of the chain was reported by CNBC publishing house, concerning people familiar with the issue. The network has been experiencing financial difficulties for several years, mainly due to the loss of communication with once-loyal customers. On top of that, the company has undergone a reshuffle in its management team, which has also had a harmful impact on its operations. And while some steps have been taken to improve the situation, the coronavirus pandemic that began seems to have been for J. J.. Crew's last straw.

The retailer runs 182 of J. Crew's retail stores today and 140 Madewell stores, a young brand launched in 2006. Some time ago, an attempt was made to separate Madewell into a separate company to reduce the debt burden, but the creditors opposed this.

Thus, J. Crew got into the company with such retailers as Neiman Marcus and J.C. Penney, for whom the current economic situation was also an insurmountable problem. The U.S. economy shrank by 4.8%, and more than 30 million people applied for unemployment benefits, and this could not help but affect retailers.

Representatives of J. Crew representatives declined any comments on this topic.

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