Multiple sources are reporting that upper-casual chain J. Crew is preparing to file for bankruptcy and could do so as early as this weekend.
Breaking: J. Crew is preparing to file for bankruptcy. It's one of several high-profile U.S. chains on the verge of unraveling during the coronavirus pandemic. https://t.co/LM6UZ810HF— The Wall Street Journal (@WSJ) April 30, 2020
The company is seeking $400 million to continue operations and is reportedly $1.7 billion in debt. It wanted its Madewell chain to go public to help pay off some of its debt, but failed to reach a deal with lenders. The pandemic, of course, has only made matters worse, as the company's physical stores have been closed since mid-March.
The company has struggled the past several years after losing its CEO Mickey Drexler and creative director Jenna Lyons with price increases, then price cuts, and then introducing a budget-friendly line that flopped with customers.