J.Jill completes financial restructuring

J.Jill has completed a transaction that kept it out of bankruptcy court.

The women’s apparel retailer has closed on its previously announced transaction that provides the company with no less than $15 million of new capital and extends its debt maturities to May 2024.  The agreement is expected to provide 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.

“While we were working closely with our lenders to complete our financial restructuring, we were also examining our operating model to identify efficiencies by rationalizing the number of floorsets, catalogs, and style count, allowing us to focus on our inventory management and ultimately enhance overall profitability going forward,” said CEO Jim Scully. “By shifting certain roles and responsibilities and eliminating open positions, we were able to minimize furloughs and headcount reductions as we managed through these challenging times.

“Despite the ongoing challenges of the pandemic, we believe that J.Jill has the financial flexibility, with an enhanced operating model, a strong direct business, loyal customers, and a dedicated team to drive sustainable results for our shareholders,” added Scully.

J.Jill operates more than 280 stores.