The American J. Crew Group filed for bankruptcy due to its inability to repay its debts and its inability to revive clothing sales amid the Corona pandemic. According to Arabia Net, the company, which specializes in the sale of clothing and accessories, is the first in the United States retail sector to apply for protection from creditors, since the Corona pandemic led to Close shops. The company’s total debt, amounting to $ 1.7 billion, as of February 1st. The bankruptcy application was filed with the Eastern Virginia District Court. The company said that it agreed with most of its creditors to convert $ 1.65 billion in debt into shares in the company, and was able to provide about $ 400 million in funding from 3 investment companies, According to what she said in a statement today. Article 11 of the bankruptcy law permits G-Crow to conduct its business, reduce its loans, and close down unrecognized stores to reduce spending. >
This will ensure that the company will keep its stores open that operate under the brands G-Crow and Madwell.
The company's sales increased last year by 2% to $ 2.5 billion, but recorded losses of $ 78.8 million, compared to $ 120 million in losses in the previous year.
