The J. Crew Group announced it has filed for Chapter 11 bankruptcy relief, as retailers are being battered by shutdowns caused by the coronavirus pandemic.
In a statement released Monday, J. Crew said under its plan, the retailer will convert about $1.65 billion of its debt into equity.
Clothing company Madewell will remain part of the J. Crew Group, the company said.
J. Crew was among many retailers shut down across the country to slow the spread of the coronavirus, as deaths in the U.S. top 67,000.
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"As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come," Jan Singer, CEO of J.Crew Group, said in a statement.
Some states have lifted or eased restrictions linked to coronavirus, prompting some businesses to reopen. Macy's revealed last week it would open 68 stores on Monday in states that have eased restrictions.
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