With MET Gala, Cannes, and major fashion shows canceled seems like COVID-19 stricken 2020 isn’t really a fashion-favorable year. It not only disrupted the calender events but made many big fashion labels report major losses and dip in sales as well.
Just when we thought this couldn’t get any worse, US retailer J Crew announced to file for bankruptcy succumbing to the global economic crisis. It has become the first US retail brand to do so, amidst this global pandemic.
The brand that has been popular by the likes of Michelle Obama and Meghan Markle officially announced filing for Chapter 11 bankruptcy with an agreement with its lenders to convert around $1.65 billion of debt into equity.
As per a leading daily, Jan Singer, CEO of J Crew explained this as a part of its restructuring process and that its sister company, Madewell will continue with its day-to-day operational activities. “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. 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”, he said in his statement.
Another big brand bites the dust, courtesy Coronavirus Pandemic. What are your thoughts on this?
(Source- WWD)
