J.Crew Group Leaves Chapter 11 Bankruptcy Following Restructuring

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J.Crew Group has finished its financial reorganization and emerged from Chapter 11 set for expansion over the long haul, according to a statement from the company.

Anchorage Capital Group, L.L.C. has assumed majority ownership of J.Crew Group as part of its restructuring. In addition, J.Crew Group has “equitized” over $1.6 billion of secured loans as part of the process, according to the statement.

“We are immensely pleased to have completed this process swiftly,” J.Crew Group CEO Jan Singer said in the announcement. “Looking forward, our strategy is focused on three core pillars: delivering a focused selection of iconic, timeless products; elevating the brand experience to deepen our relationship with customers; and prioritizing frictionless shopping.”

J.Crew Group is also capitalized with a $400 million exit term loan with a 2027 maturity offered by Anchorage in addition to Davidson Kempner Capital Management LP and GSO Capital Partners LP as well as others. The firm also can use a new $400 million ABL credit facility with a 2025 maturity that Bank of America, N.A. agented.

AlixPartners, LLP functioned as J.Crew Group’s restructuring advisor, while Weil, Gotshal & Manges LLP served as its attorneys and Lazard worked as its investment banker.

J.Crew Group, an omnichannel merchant of clothing, accessories and footwear, runs retail locations for the J.Crew, J.Crew Factory and Madewell brands. The company also has websites for the three banners.

Anchorage CEO Kevin Ulrich said the company sees massive potential for development at each brand and is “confident their existing robust direct-to-consumer and e-commerce platforms will position the Company to succeed in today’s evolving retail landscape.”

In May, news surfaced that J.Crew Group had become the first major merchant to make a bankruptcy filing with plans to give over control of the firm to lenders. The company made its federal court filing with an arrangement to eliminate $1.65 billion in debt for providing ownership to debtors.

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