Anchorage Capital Group has become the majority owner of J.Crew Group

Anchorage Capital Group has become the majority owner of J.Crew Group

US apparel retailer J.Crew Group has emerged from Chapter 11 with private equity firm Anchorage Capital Group as its new majority owner.

In a statement, the retailer said it has successfully completed its financial restructuring process and has equitised more than US$1.6bn of secured indebtedness.

To support ongoing operations and future growth initiatives, J.Crew is capitalised with a $400m exit term loan due 2027 provided by Anchorage, as well as GSO Capital Partners LP and Davidson Kempner Capital Management LP, among others. In addition, the company has access to a new $400m ABL credit facility due 2025 agented by Bank of America.

"Looking forward, our strategy is focused on three core pillars: delivering a focused selection of iconic, timeless products; elevating the brand experience to deepen our relationship with customers; and prioritising frictionless shopping," said J.Crew CEO Jan Singer. "As a reinvigorated company, we are committed to serving the changing life and style of today's multifaceted consumer and to delivering long term, sustainable results."

Kevin Ulrich, CEO of Anchorage, added: "We see an immense opportunity for growth and expansion at each brand and are confident their existing robust direct-to-consumer and e-commerce platforms will position the company to succeed in today's evolving retail landscape."

J.Crew filed for Chapter 11 bankruptcy protection in May as part of an agreement that would hand over control to its top lenders.

As part of the deal, J.Crew said Madewell – which the group had been planning to spin off through an initial public offering (IPO) – will remain part of the company, and Libby Wadle will continue in her role as CEO of the brand.

The Covid-19 pandemic has weighed heavily on the finances of many apparel retailers over the last three months and has also seen luxury department store retailer Neiman Marcus, men's wear retailer Brooks Brothers, and most recently off-price fashion retailer Stein Mart file for Chapter 11.