J. Crew, the apparel seller known for its preppy clothing, has filed for Chapter 11 bankruptcy protection, the first major retailer to fail amid widespread business shutdowns across the U.S. aimed at containing the coronavirus.
In a statement on Monday, J. Crew said its Madewell store chain will remain part of the J. Crew Group. It added that its ecommerce businesses, which contribute more than half of the company’s sales, will continue to operate. It also plans to reopen stores as soon as stay-at-home orders and other health restrictions related to COVID-19 are lifted.
Even before the pandemic shuttered much of the economy, J. Crew was struggling with changes in consumer tastes. It was also saddled with a debt load stemming from its $3 billion leveraged buyout in 2011 by private-equity firms TPG Capital and Leonard Green & Partners.
The pandemic has proven catastrophic for many retailers that were forced to shut their doors, with J.C. Penney and Neiman Marcus expected to follow J.Crew in filing for bankruptcy protection.
Clothing store sales plummeted more than 50% in March, according to Commerce Department data, and it has grown worse since. Jeans maker True Religion Apparel filed for bankruptcy protection last month.
With reporting by the Associated Press. This is a developing story and will be updated.
