J. Crew nears bankruptcy, Brooks Brothers seeks buyer

The companies are just the latest retailers facing financial difficulties

National /
May.May 01, 2020 10:15 AM
A J. Crew storefront on Madison Avenue in New York and a Brooks Brothers store in Beverly Hills, California (Credit: Richard Levine/Corbis and FG/Bauer-Griffin/GC Images)

A J. Crew storefront on Madison Avenue in New York and a Brooks Brothers store in Beverly Hills, California (Credit: Richard Levine/Corbis and FG/Bauer-Griffin/GC Images)

J. Crew and Brooks Brothers are among the latest retailers on the brink of bankruptcy.

J. Crew, which has 322 stores, is seeking $400 million in financing to fund operations during bankruptcy, CNBC reported. And Brooks Brothers is seeking to sell itself, a deal that could potentially be part of a bankruptcy filing, according to Bloomberg.

J. Crew, whose holdings include retailer Madewell, was struggling before the coronavirus sent shoppers home in March. The company saw “meaningful improvement” in its 2019 business, according to Moody’s, compared with the prior year, but as of February it had $93 million in total liquidity as debts came due. TPG Capital and Leonard Green & Partners bought the company in 2011 for $3 billion.

Similarly, Brooks Brothers’ woes predate the health crisis. The Wall Street favorite has $600 million in debt and many of its 250 U.S. locations were also struggling before the pandemic, sources told Bloomberg. Its attempt at a sale began last year.

The pandemic has exacerbated retailers’ financial problems. High-end department store Neiman Marcus is also nearing bankruptcy, though a group of its investors are pushing for the firm to seek a sale. J.C. Penney, too, is in talks with its lenders for at least $800 million in bankruptcy financing.  [CNBC, Bloomberg] — Georgia Kromrei


Related Articles

arrow_forward_ios
A photo illustration of Fifth Avenue, Grand Central and SoHo in New York City (iStock)
Manhattan retail rents tick up as recovery slogs along
Manhattan retail rents tick up as recovery slogs along
DoorDash's Tony Xu with 51 Eads Street and 6133 Jericho Turnpike
Startup plans LI convenience stores that shoppers can’t enter
Startup plans LI convenience stores that shoppers can’t enter
Strong month for US economy, but hospitality hiring slows
Jobs report shows more workers returning to office
Jobs report shows more workers returning to office
Jersey Mike's CEO Peter Cancro in front of 1500 Smithtown Avenue in Bohemia, Long Island (Jersey Mike's, Google Maps, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Sandwich chain Jersey Mike’s expanding in NY
Sandwich chain Jersey Mike’s expanding in NY
Don Ghermezian, CEO, Triple Five Group, in front of the American Dream Mall in East Rutherford (Triple Five Group, American Dream Mall, iStock)
American Dream lost $60M in 2021
American Dream lost $60M in 2021
At Home's Lee Bird with 2100 Bartow Avenue (Google Maps, iStock) Bronx, New York
Home decor retailer leases 135K sf for first Bronx store
Home decor retailer leases 135K sf for first Bronx store
A photo illustration of Market by Macy's located at 321 State Street in Southlake, Texas (Google Maps, iStock)
Macy’s embracing smaller stores in department store shuffle
Macy’s embracing smaller stores in department store shuffle
A photo illustration of retail buildings in Brooklyn (iStock)
Brooklyn retail rents on the rise
Brooklyn retail rents on the rise
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...