US clothing retailer J. Crew filed to begin bankruptcy protection proceedings Monday, after reaching an agreement with major creditors on a $1.65 billion debt restructuring plan, the company said in a statement.
The brand, whose clothes have been worn by former first lady Michelle Obama, said online sales operations, which account for more than half its revenues, will continue as normal.
It said it plans to reopen its stores once shutdowns due to the coronavirus pandemic are lifted.
It said it had reached an agreement with the bulk of its creditors to convert $1.65 billion into equity, and had secured commitments of $400 million in new money from existing lenders to finance its operations.
Besides J Crew, the filing includes the group's Madewell brand of casual women's clothes.
"Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances," J Crew Group CEO Jan Singer said.
"As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come."
The company filed for voluntary Chapter 11 proceedings in a federal bankruptcy court in the Eastern District of Virginia.
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