J. Crew files for bankruptcy protection, handing ownership to creditors, as first big retailer fails in pandemic

The Financial Post ^ | May 4 2020 | Mike Spector, Reuters

[xp38]

J. Crew Group Inc filed for bankruptcy protection on Monday with a plan to hand over control to lenders, adding to a list of brick-and-mortar retailers pushed to the brink by widespread store closures in response to the COVID-19 pandemic.

The New York-based chain, known for preppy clothing at times worn by former first lady Michelle Obama, filed for bankruptcy in a Virginia federal court with an agreement to eliminate its roughly US$1.65 billion of debt in exchange for ceding ownership to creditors. It is the first big retailer to fail during the pandemic.

[xp38]

The Mooch kiss of death.

[dfwgator]

Get Woke, Go Broke.

[SMARTY]

Demonstrating THEIR non-essentialness 😊

[max americana]

“The New York-based chain, known for preppy clothing at times worn by former first lady Michelle Obama,”

****

That’s the reason why it failed. Clothing for tranny wookies aint good..

[ImJustAnotherOkie]

I guess that means their upcoming Wookie Line reveal is toast.

[AlaskaErik]

I’ve heard of them, but I have no idea what they sell, as I’ve never been to one.

[dfwgator]

Maybe she could so to Thornton Melon's Tall and Fat Store.



Hi there. Are you a large person? Pleasantly plump? A little on the hefty side, perhaps? Well, let's face it: Are you FAT? When you go jogging, do you leave pot-holes? When you make love, do you have to give directions? At the zoo, do the elephants throw YOU peanuts? Do you look at a menu and say 'OK'? Well, now, you can eat all you want, because at Thornton Melon's "Tall & Fat" stores, we've got you covered. That's right. Fine woolen, and woolen-blend suits and sport coats, in all the larger sizes - husky, stout, extra-stout, and the new Hindenburg line. And for you ladies we have caftans, muumuus, and our own exclusive A-frame in all colors and patterns. Yes, we have miles and miles of fabric. So take it from me, Thornton Melon, if you want to look thin, you hang out with fat people.

[adorno]

They were probably heading towards bankruptcy anyway, before the coronavirus closure.

But, just like a lot of human deaths, this retailer failure will be blamed on the virus.

[Lurkinanloomin]

Guess Big Mike didn’t sell as well as they thought.

[frank ballenger]

I guess that means their upcoming Wookie Line reveal is toast.

Heard Michelle O came in second in a Chewbacca lookalike contest once. She could have won but her natural facial hair was too thick.

[1Old Pro]

For every high profile company going under, there are a hundred small businesses also going under.

[Moonman62]

The pandemic excuse is horsecrap. They’ve been struggling for a few years:

https://en.wikipedia.org/wiki/J.Crew#Recent

[angcat]

Good!

[alstewartfan]

Trump’s “very hard decisions” at the end of April turned out to be tepid stages of re-openings lasting as far as the eye can see. Pathetic!!!!!

[treetopsandroofs]

Seeing as how Mike was their only important customer...

Good riddance.

Had thought they were only catalog, too expensive for my tastes anyway.

[xp38]

Rodney wouldn’t have a career in today’s snowflake culture.

[Jemian]

I thought Nieman-Marcus had already filed for bankruptcy.

[Fresh Wind]

It took them just 2 months to run up $1.65 billion in debt?

Couldn’t be that they were in deep trouble before the ‘rona hit, and they are just trying to get a bailout from Uncle Sugar, could it?

[KosmicKitty]

I went to high school with the founder’s grandson. I only found that out because his father just died and I read the obit.

Very cute boy. Haven’t seen him since 1977.

[Redwood71]

Before you raise a tear for them, they are actually part of TPG Capital, Leonard Green & Partners, a major investment firm. These people play monopoly with real buildings. In December of last year, Leonard Green & Partners announced that it had raised a total of $14.75 billion across two funds in seven months. They laugh at the loss of Crew.

rwood