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J.Crew files for Chapter 11 bankruptcy

Clothing brand expects to stay in business
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Clothing brand J.Crew has filed for bankruptcy.

It's the first national U.S. retailer to file for Chapter 11 bankruptcy-protection since the coronavirus pandemic forced a wave of store closures.

J.Crew group said it filed to start proceedings in federal bankruptcy court in the eastern district of Virginia.

The clothing retailer also said it reached a deal with its lenders to convert about $1.65 billion of debt into equity.

J.Crew group expects to stay in business and emerge from bankruptcy as a profitable company.

The company also operates the fast-growing denim brand “Madewell,” which was slated for an initial public offering, but now it will remain part of the J.Crew group.