The first wicket of the corporate world fell due to the recession / corona crisis: a company with 13000 employees filed for bankruptcy
Amidst the global recession caused by the outbreak of the Corona virus, the well-known American company J.Crew has declared bankruptcy. The Corona epidemic was already plaguing the company, and the virus was spreading like wildfire.
The Corona closed the company’s 500 stores, some of which will never reopen
Control of the company is now in the hands of major creditors
Libby Wadle will be the CEO of the same company
America’s famous company bankrupt
A well-known New York-based company has reached an agreement with a federal court in Virginia to declare bankruptcy at a time when the world is facing a recession due to the corona virus. This textile company is so famous that Michelle Obama, the wife of former US President Obama, also used it. The debt-ridden company will pay off 2 billion in debt in exchange for about 82% of its equity shares.
This is the first time that such a large company with 13,000 employees has declared bankruptcy after the global recession caused by the Corona virus. The Corona virus has closed the company’s 500 stores, many of which will never reopen. The company, however, did not say how many shops were being closed permanently. Now the control of J.Crew Company will be in the hands of the main creditors of the company. Its main creditors are Anchorage Capital Group, GSO Capital Partners and Davidson Kempner Capital Management.
Madewell, known for its denim, is also part of J.Crew
J.Crew also owns Madewell, a company known for its denim wear, whose stores have also been closed due to the epidemic. The company is estimated to have lost 900 900 million, according to the report. The company said Madewell will be part of J.Crew and Libby Wadle will continue as CEO of the company.
The company has been facing difficulties since the trend of online shopping increased
J.Crew started in Manhattan in 1989 and has since spread across the United States. However over time the popularity of this company was declining. The company was in dire straits long before the Corona epidemic broke out. The main reason behind the collapse of the company is its traditional way of selling. On the other hand, the trend of online shopping was increasing among the people.
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