J.Crew Team stated Tuesday it expects to emerge from Chapter 11 in early September, just after a personal bankruptcy court docket accepted its restructuring program.
The program, accredited by a Virginia federal court docket, will equitize more than $1.6 billion of secured personal debt, and supply for $400 million in asset-based mostly financial loans as properly as $400 million of new monetary assist.
The New York-based mostly chain, recognised for preppy clothes at times worn by previous initial woman Michelle Obama, submitted for personal bankruptcy earlier this 12 months and was quickly joined by peers these types of as Neiman Marcus Team, J.C. Penney and Brooks Brothers.
The enterprise was pressured by the virus outbreak to temporarily close its nearly 500 J. Crew, J. Crew Factory and Madewell shops, and also shelve its designs for an first community giving of its Madewell business.
In 2011, J. Crew was taken non-public by TPG and Leonard Inexperienced & Partners in a about $3 billion leveraged buyout. Many years later in 2017, the retailer prevented personal bankruptcy in a deal with lenders that reduced full personal debt and pushed because of dates on obligations.