J Crew the once American retail darling brand has filed for bankruptcy on Monday 05/04/2020, falling victim to the Covid-19 shutdown. However the retail brand was already carrying huge debt, along with fashion stagnation, and went into the Corona Virus pandemic in a extremely weak position on both fronts. J Crew has become the first national chain to fall victim to Covid-19.
On top of the fact that in 2017 J Crew began to lose currency (both financially and Brand cred) and was blind to the fact people began to realize that the brand didn’t stand for absolutely nothing. They were accused of becoming self satisfied and stagnant as a brand, and started to loss sales, carrying a debt of 1.7 billion from a leveraged buyout back in 2011, in addition to losing “Cultural Capital” it’s hard to see J Crew surviving.
However miracles happen everyday, as Texas based TPG brought J Crew for $3 billion, and plans to come out of bankruptcy after the bondholders and lenders exchange their debt for a 82% equity stake in the reorganized company, despite the fact that the brand may never become relevant to who we are today.