The preppy gawds among us may soon officially be in disarray.
As the coronavirus continues to threaten smaller businesses who don’t have enough cash on hand to weather the storm, one of the nation’s premier clothing brands is the first to succumb to the lack of income. J.Crew Company, which is the parent company of J.Crew and Madewell Brands has begun filing for Chapter 11 bankruptcy in the Eastern District of Virginia.
The company also said it had reached a deal with its lenders to convert about $1.65 billion of debt into equity. Contrary to popular belief, companies filing for bankruptcy doesn’t always signify the beginning of the end, it can also be a way of clearing debt off the books and getting a fresh start without such massive looming liabilities.
“This agreement with our lenders represents a critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J.Crew and further enhancing Madewell’s growth momentum,” said CEO Jan Singer in a statement. “Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances. 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.”
These types of situations usually benefit the consumers because stores often offer amazing sales to liquidate all their merchandise in order to raise money pay off some of that debt. So if you’re a preppy bro and in need of all the pastels you heart desires, just wait on it