After a dismal spring, there is finally some good news for J.Crew Group, Inc.
The retailer reported yesterday that it will receive $566.5 million in cash via an offer exchange with certain eligible noteholders. The exchange launched earlier this month and was completed through payment-in-kind notes (PIK). So far, J.Crew has received at least $530,472,449, approximately 93.6% of the total amount. The remaining 6% are expected to be received by July 10th, completing the deal.
The deal is said to possibly thwart a bankruptcy filing and buy more time for the struggling retailer, as it continues to move forward with its restructuring plan—one that includes mass layoffs, replacing key executives, cutting back on its famed print catalog distribution and closing stores.
“[T]he Company views these transactions as strategically important to its overall effort in positioning the company for long-term success. Addressing the nearest-term maturity removes an overhang in a challenging market environment and provides the company a clear and more confident path to execute its business plan,” the company said in a statement.