UNITED STATES—Retailer J. Crew Group Inc. filed for bankruptcy protection on Monday, May 4 citing setbacks due to COVID-19 crisis.
The company is overwhelmed with $1.65 billion in debt and with bankruptcy protection it will be converted into equity. J. Crew claims they will lose $900 million in sales after having to close down stores during the COVID-19 pandemic.
Americans have applied for unemployment as COVID-19 has forced many companies to close their doors and lay employees.
Prior to COVID-19, J. Crew was in the process of expanding their denim brand, Madewell, in order to help pay down a large portion of its debt. Many other large retailers like Neiman Marcus, Lord & Taylor and other companies are facing uncertain futures regarding bankruptcy as well.