// J.Crew may file for Chapter 11 bankruptcy protection as soon as this weekend
// It is reportedly looking to secure $400m in financing to fund operations in bankruptcy
J.Crew is reportedly preparing to file for Chapter 11 bankruptcy protection as soon as this weekend, as the coronavirus pandemic continues to plunge fashion retailers into crisis.
According to CNBC and The Wall Street Journal, the US-based retailer has been in talks with several lenders over the past few weeks.
J.Crew is reportedly looking to secure $400 million in financing to fund operations in bankruptcy, cautioning that timing could still slip.
However, a deal has yet not been reached.
J.Crew, which narrowly avoiding bankruptcy in 2017 through a debt swap deal, had only appointed former Victoria’s Secret boss Jan Singer as its new chief executive in January this year.
For the first half of 2019, the retailer posted a $60.5 million, which compares to a loss of $40 million in the first half of 2018.
J.Crew’s half-year sales also dropped six per cent year-on-year to $775 million, although total revenues climbed four per cent year-on-year to $1.2 million.