J. Crew: More than half of stores reopened; gives update on real estate
J.Crew Group is reopening its stores and bringing back furloughed employees. It also remains in discussions with landlords.
The apparel retailer filed for bankruptcy in early Mau, and, later in the month received approval from bankruptcy court to pause rent payments for two months due to the COVID-19 pandemic. On Friday, J. Crew said it has been in discussions with landlords regarding improving store lease terms as part of its restructuring process, and that, as part of its reorganization, it has filed notice with the U.S. Bankruptcy Court to reject 67 store leases.
“The company will remove a store lease from the rejection list in the future if it reaches an acceptable resolution with the affected landlord,” J.Crew stated.
As of June 12, J. Crew had reopened 315 locations, or 64% of its total store fleet and called back the majority of its furloughed employees. Also, the company has added approximately 400 positions at its Lynchburg, Va. distribution center, which supports its e-commerce businesses. J.Crew said the additions stemmed from continued online sales momentum that was increasing even before stores were closed during the pandemic.
As of June 12, the retailer operates 181 J.Crew retail stores, 140 Madewell stores and 170 factory stores.