The retailer, which filed for Chapter 11 bankruptcy protection in May, said a bankruptcy court in Virginia confirmed the company's reorganization plan. J. Crew expects to officially emerge from Chapter 11 in early September.
The plan will put J. Crew’s lenders, led by Anchorage Capital Group, in control of the company through the conversion of some $1.65 billion in debt into equity. It also provides a $400 million exit facility and $400 million of new term loans.
"The confirmation of our plan of reorganization is another significant milestone in our path to transforming our business to drive long-term, sustainable growth for J.Crew and further advance Madewell's growth momentum," said CEO Jan Singer. “We thank our associates, customers, vendors, landlords and lenders for their support, which has enabled us to efficiently move through this process while navigating our business through the current environment. As we move towards emergence, we look forward to continuing to position J.Crew and Madewell for long-term success."
Earlier this month, J. Crew said that, as of Aug. 9, it had reached agreements with landlords to improve lease terms on its store portfolio as part of its restructuring process. As of Aug. 25, J. Crew operates 170 namesake stores, 141 Madewell stores and 170 J.Crew Factory stores.