J. Crew Files For Bankruptcy As a Result of the Coronavirus Pandemic

Sad news for fans of seersucker, gingham, and preppy stripes. J. Crew has filed for bankruptcy. Or rather, J. Crew Group, the company that owns the J. Crew, J. Crew Factory, and Madewell brands, has filed for bankruptcy. On Monday, it became the first national retailer to do so in the wake of COVID-19, and CEO Jan Singer said in a statement:

As a reminder, just because a company files for bankruptcy does not necessarily mean that it goes completely out of business. According to the statement, its online business represents more than 50 percent of total revenues, but coronavirus has put the retailer (read: basically all retailers) in a difficult financial position because of physical store closures. According to CNN, J. Crew Group operates nearly 500 stores, including J. Crew, Madewell and J. Crew Factory stores, which have all been shut down until stay-at-home restrictions are lifted. The site also reports that Madewell has been performing significantly better than its sister brand in terms of sales.

Since there’s no concrete end date in sight for when the pandemic will be over, unfortunately, this might not be the first bankruptcy news we’ll hear about. But here’s hoping the company makes it through the other side of this thing, and in the meantime I’ll be stocking up on all my fave Madewell jeans justttt in case.

Source: Read Full Article