1. What did J.Crew Group announce?
On May 4, 2020, J.Crew Group, Inc., announced it had reached an agreement with its lenders and its financial sponsors under which the Company will restructure its debt and deleverage its balance sheet, positioning J.Crew and Madewell for long-term success.
To facilitate the agreed-upon restructuring, the parent company of J.Crew Group, Inc., Chinos Holdings, Inc. and certain affiliates, commenced voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia.
2. What is Chapter 11?
Chapter 11 refers to the section of the U.S. Bankruptcy Code that governs court-supervised reorganizations of businesses.
Chapter 11 is a tool that provides companies the breathing room necessary to fix their business and address their liabilities while continuing day-to-day operations. This is an orderly, court-supervised process that protects a company’s ability to conduct business while working toward the day when it can emerge as a stronger and more secure competitor in the marketplace. It is not a liquidation filing.
3. How long will this financial restructuring process last?
It is too early to speculate how long this process will take. As this process moves forward, J.Crew Group will work with its lenders and its financial sponsors to reach an approved Plan of Reorganization. The Company anticipates that it will be able to begin soliciting support from its creditors for a proposed plan soon, which will allow the process to move as quickly as possible.
4. How does the financial restructuring impact customers?
As our customer, you will remain at the center of everything we do. We are and will remain fully operational throughout this restructuring process, although we will continue operating under the COVID response measures currently in place and look forward to reopening our stores in accordance with CDC guidance as quickly and safely as possible. In the meantime, we continue to offer the same high-quality products you love and great customer service you expect from J.Crew, J.Crew Factory and Madewell through our e-commerce platforms.
All company policies, including our rewards programs, gift cards, returns and exchanges, among others, will continue as usual.
5. Does this mean J.Crew and/or Madewell is going out of business?
J.Crew Group will continue operating in the ordinary course during the Chapter 11 process, although the Company has made temporary changes to its operations as a result of the ongoing public health crisis. The Company will continue operating under the COVID response measures currently in place and looks forward to reopening its stores in accordance with CDC guidance as quickly and safely as possible.
6. Will COVID-19 affect the financial restructuring process?
J.Crew Group intends to move through the Chapter 11 process as quickly and efficiently as possible and does not anticipate that COVID will have an impact on its ability to do that.
7. Will the financial restructuring prevent J.Crew, J.Crew Factory and/or Madewell from reopening after COVID-19 restrictions have lifted?
We are and will remain fully operational throughout this restructuring process, although we will continue operating under the COVID response measures currently in place and look forward to reopening our stores in accordance with CDC guidance as quickly and safely as possible. In the meantime, we continue to offer the same high-quality products you love and great customer service you expect through our e-commerce platforms.
The Chapter 11 process will not prevent us from reopening our stores.
8. Will this process affect product prices or offerings?
Merchandise pricing and offerings will not be affected by the Chapter 11 process.
9. Does this process affect J.Crew Rewards and Madewell Insider loyalty programs? Will I still be able to redeem points earned on my Rewards or Insider account for future purchases?
The Court has granted us the authority to continue these programs; they will not be affected by the Chapter 11 process.
10. Can I still exchange, return merchandise and/or cancel my orders?
We are accepting exchanges and returns, and cancellation of orders on our usual terms.
Due to the ongoing public health crisis, we have extended our return and exchange period to 60 days for all orders placed beginning March 1st, 2020. Please allow additional time for your return to be processed.
Send us an email, and we can assist if you’re having any issues.
11. Should I expect a delay with my orders?
We do not expect any delays to your order as part of the Chapter 11 process. However, you may experience shipping delays, as we have implemented a social distancing plan as a precaution for our associates in our distribution center, and this may temporarily slow down processing.
12. Will I still receive my items on backorder?
Yes. We do not expect backorders to be affected by the Chapter 11 process.
You may experience shipping delays, as we have implemented a social distancing plan as a precaution for the teams in our distribution centers, and this may temporarily slow down processing.
13. Can I still redeem gift cards?
Yes, we are accepting gift cards in line with our usual terms.
14. Will this impact me as a holder of a J.Crew Credit Card?
J.Crew Credit Cards should work as they normally do. For issues with your credit card, please visit us online at https://d.comenity.net/jcrew/.