J. Crew Group Inc. filed for bankruptcy protection today with a plan to hand over control to lenders, adding to a list of brick-and-mortar retailers pushed to the brink by widespread store closures in response to the COVID-19 pandemic, Reuters reported. The New York-based chain filed for bankruptcy in a Virginia federal court with an agreement to eliminate its roughly $1.65 billion of debt in exchange for ceding ownership to creditors. It is the first big retailer to fail during the pandemic. Anchorage Capital Group, Blackstone Group Inc.’s GSO Capital Partners and Davidson Kempner Capital Management hold significant portions of J. Crew’s senior debt and are in line to take control of the company. They are also providing about $400 million of fresh financing to aid J. Crew’s operations, while it navigates chapter 11 bankruptcy proceedings, the company said in a statement.
