J. Crew files for Chapter 11 bankruptcy

CNBC: J. Crew Files for bankruptcy

So here’s what that means:

• The J. Crew website will operate as normal. For now.
• They expect all gift cards, loyalty programs, and returns & exchanges to continue as usual.
• This isn’t a liquidation.
• To support operations through the bankruptcy process, they got an additional $400 million in funding from folks they already owe money to.
• And as part of that “financial reorganization plan”, they “will hand over control to top creditors, including the hedge fund Anchorage Capital.“
• J. Crew wants to try to reopen stores as quickly as possible to “continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances.” So, they want to re-open stores, but obviously there are complicating factors.
• Madewell (which has been a bright spot) stays put, and under the J. Crew umbrella.

Happy Monday.