J. Crew, the preppy clothing company whose products were famously worn by Michelle Obama, filed for bankruptcy protection on Monday. Other big names in retail, including Neiman Marcus and J.C. Penney, are also said to be struggling with the toll of mass shutdowns from the coronavirus pandemic. J. Crew announced that its parent company, Chinos Holdings, had filed for Chapter 11 protection in federal bankruptcy court for the Eastern District of Virginia. As part of its financial reorganization plan, the hedge fund Anchorage Capital will see $1.65 billion of debt coverted into equity. The company plans to hold on to its Madewell brand, which it had been considering to spin off. J. Crew officials added that its e-commerce operation would continue to operate normally, and that it planned to reopen its J. Crew and Madewell stores once state and city lockdowns are lifted. In March, sales of clothing and accessories fell by more than half. The numbers for April are expected to be even worse, because many U.S. stores were open for at least some of March.
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