J.Jill inches closer to bankruptcy as it extends forbearance — again
J.Jill received more breathing room on the day that its forbearance agreements were set to expire.
The women’s apparel retailer reached an agreement with lenders to extend a forbearance period slated to end August 6 until August 13. The extension, one of several the chain has received during the past several weeks, gives J.Jill more time to complete negotiations with lenders. (Lenders cannot exercise any rights and remedies against the company during the forbearance period.)
J.Jill entered into two forbearance agreements in mid-June after falling out of compliance with certain covenants on its asset-based lending and term loan credit facilities amid the COVID-19 pandemic. In a 10-K filing at the time, the company said it had doubts about its ability to remain a “going concern.”
The retailer, which was struggling going into the pandemic, is exploring various financial options. J.Jill posted a first-quarter net loss of $70.3 million, compared to income of $4.4 million in the year-ago period. It plans to permanently close 11 stores in fiscal 2020, with most expected to go dark in the second quarter, ending the year with a total of 275 stores.