J.Crew made a huge splash when it originally expanded to Canada in 2011. But over the years, the American retailer has been quietly closing its stores. The brand has struggled with massive debt and a decline in popularity. Many of its Canadian stores have shuttered in malls across the nation.
Now there are reports that J.Crew is preparing to file for bankruptcy.
According to sources of CNBC, J.Crew could file for bankruptcy as soon as this weekend. The privately held company is allegedly working to secure $400 million in financing to fund operations in bankruptcy.
When contacted by CNBC, a spokesperson for J.Crew declined to comment. But if the company does file for bankruptcy, it wouldn’t be a surprise to those in the industry.
The New York-based retailer has been struggling for a while.
Since the brand lost its design chief Jenna Lyons and retail executive Mickey Drexler, it has suffered from criticism that it “fell out of touch with its once-loyal customers.” Matched with heavy debt, sales challenges, and the forced closure of stores due to the global health pandemic, the outlook hasn’t been great for the American retailer.
While J.Crew made strides of improvement in 2019, it now joins a list of retailers that had been struggling prior to the pandemic and now could seek bankruptcy. We’ll keep you updated as this story progresses.
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