J.Crew Group Inc. said yesterday that it expects to emerge from chapter 11 in early September, after a bankruptcy court accepted its restructuring plan, Reuters reported. The plan, approved by a Virginia federal court, will equitize over $1.6 billion of secured debt, and provide for $400 million in asset-based loan as well as $400 million of fresh financial aid. The company was pressured by the virus outbreak to temporarily close its nearly 500 J. Crew, J. Crew Factory and Madewell stores, and also shelve its plans for an initial public offering of its Madewell business. In 2011, J. Crew was taken private by TPG and Leonard Green & Partners in a roughly $3 billion leveraged buyout. Years later in 2017, the retailer avoided bankruptcy in a deal with creditors that reduced total debt and pushed due dates on obligations.
