J.Crew Has Filed for Bankruptcy
J.Crew Group, which owns and operates Madewell and J.Crew, has filed for bankruptcy, CNN reports.
In a statement on the brand's website, CEO Jan Singer said that while they are filing for Chapter 11 bankruptcy, they will continue day-to-day operations. "Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances," she said. "As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come."
RELATED: Where to Buy Fabric Face Masks Online
J.Crew is not the only fashion retailer facing hardships due to the coronavirus pandemic. Major department stores like Neiman Marcus and J.C. Penney are said to be exploring their options as they face unprecedented setbacks. Many of these brands, including J.Crew, have sought to mitigate losses by furloughing employees, reducing salaries and spending, however, as lockdowns in major shopping cities across the world continue, the financial strain seems to be getting worse.
As time goes on, J.Crew is likely just the first among many filings we see in the fashion industry.