J. Crew nears bankruptcy, Brooks Brothers seeks buyer

The companies are just the latest retailers facing financial difficulties

TRD 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
(iStock)

UK home prices hit a low not seen since 2012

UK home prices hit a low not seen since 2012
San Francisco Supervisor Dean Preston and San Francisco Apartment Association Executive Director Janan New

Real estate groups challenge San Fran’s permanent ban on coronavirus-related evictions

Real estate groups challenge San Fran’s permanent ban on coronavirus-related evictions
Malls are hemorrhaging retailers left and right. What will happen with all that space? Some could be converted into apartments and condominiums. (iStock)

Retail-to-residential conversions are in cards at America’s doomed malls

Retail-to-residential conversions are in cards at America’s doomed malls
Photo illustration of Gov. Andrew Cuomo, Judge C. Stephen Hackeling and Chief Justice Lawerence Marks (Getty, iStock)

Judge rules evictions guidance unconstitutional, moratorium invalid

Judge rules evictions guidance unconstitutional, moratorium invalid
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Related lays out $200M debt settlement plan for Tel Aviv bondholders
Inside a $1.8B new development odyssey

Inside a $1.8B new development odyssey

Inside a $1.8B new development odyssey
The 30-year fixed-rate mortgage averaged 3.07 percent for the week ending July 2 (iStock)

Mortgage rates hit all-time low

Mortgage rates hit all-time low
The economy beat expectations in June, adding 4.8 million jobs, with retail and hospitality leading the way. But a surge in coronavirus infections threatens further gains. (Getty)

Retail and hospitality led June job gains as virus surged

Retail and hospitality led June job gains as virus surged
arrow_forward_ios

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

Loading...