FILE PHOTO: A J.Crew store logo is pictured on a building along the Lincoln Road Mall in Miami Beach, Florida March 17, 2016. REUTERS/Carlo Allegri
(Reuters) – J.Crew Group Inc said on Tuesday it expects to emerge from Chapter 11 in early September, after a bankruptcy court accepted its restructuring plan.
The plan, approved by a Virginia federal court, will equitize over $1.6 billion of secured debt, and provide for $400 million in asset-based loan as well as $400 million of fresh financial aid.
The New York-based chain, known for preppy clothing at times worn by former first lady Michelle Obama, filed for bankruptcy earlier this year and was soon joined by peers such as Neiman Marcus Group, J.C. Penney Co Inc, Brooks Brothers.
The company was pressured by the virus outbreak to temporarily close its nearly 500 J. Crew, J. Crew Factory and Madewell stores, and also shelve its plans for an initial public offering of its Madewell business.
In 2011, J. Crew was taken private by TPG and Leonard Green & Partners in a roughly $3 billion leveraged buyout. Years later in 2017, the retailer avoided bankruptcy in a deal with creditors that reduced total debt and pushed due dates on obligations.
Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli