J.Jill in agreement to avoid bankruptcy; will restructure out of court
J.Jill has managed to avoid taking a trip bankruptcy court.
The women’s apparel retailer’s plan to restructure its debt out of court received the green light from lenders holding 97.8% of its term loan facility, allowing J. Jill to move forward without having to file for bankruptcy. As previously reported, the plan extends the company’s debt maturities through May 2024, enabling J.Jill “to strengthen its balance sheet and better position itself for long-term growth,” the retailer stated. It also provides for at least $15 million of new cash in the form of a junior term loan.
The retailer, which operates about 280 stores nationwide, expects the transaction to close on or about September 30, 2020.
“The transaction provides J.Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan,” the company stated.
In a statement when the plan was first announced, interim CEO Jim Scully said:
“J.Jill has been buoyed by a strong direct business and a loyal customer base, and the transaction proposed in this agreement will enable our company to emerge from this challenging stretch in a position of strength.”
Kirkland & Ellis is serving as legal counsel to the company, and Centerview Partners is its financial adviser and investment banker. AlixPartners is J. Jill’s restructuring adviser.