On Monday, May 4, J.Crew became the first major retailer to file for bankruptcy amid the COVID-19 pandemic.
Prior to the pandemic J.Crew, like other major retailers, was already in debt. The retail business as a whole is adapting to the age of online shopping, as many struggle with the amount of foot traffic and revenue they receive from in-store spending from shoppers.
The company is expected to reopen its stores as quickly and safely as possible, as many states begin to reopen and lift their lock down orders. The company did not give a date as to when they expect to reopen their stores.
According to the ‘message to our customers’, released on J.Crew’s website, customer programs, returns and exchanges are expected to continue. The restructuring process is to ensure longevity for the company.
J.Crew was in debt prior to the pandemic for approximately $1.6 billion and planned on combating that debt with their Madewell brand by making it a public company. Those plans have been put on hold as the company’s future is uncertain.
J.Crew customers took to social media to express that although they are saddened by the company’s uncertain future, they’re excited for the sales the bankruptcy is expected to bring. J.Crew currently has three different sales taking place on their website.