Retail Giant J. Crew Files for Bankruptcy

J.Crew has filed for bankruptcy protection due to the COVID-19 pandemic, with plans to restructure its $1.7 billion debt into equity. Despite the filing, J.Crew intends to continue online operations and reopen stores as conditions allow. The retail industry has been severely impacted by the pandemic, with other companies like JCPenney and Neiman Marcus facing significant financial challenges. JCPenney has $4 billion in debt, while Neiman Marcus may also file for bankruptcy to manage its $4.3 billion debt.

What was the primary reason for J.Crew's decision to file for bankruptcy protection?

• To expand their business operations

• Due to the financial impact of the COVID-19 pandemic

• To merge with another company

• To launch a new product line

What does J.Crew plan to do with its stores as pandemic restrictions ease?

• Permanently close all stores

• Reopen stores as quickly and safely as possible

• Sell stores to other retailers

• Convert stores into warehouses

According to J.Crew's CEO, what is the expected outcome of the financial restructuring?

• To thrive for years to come

• To focus solely on online sales

• To close all international stores

• To reduce the number of employees

Which other retailer was mentioned as struggling before the pandemic?

• Amazon

• JCPenney

• Target

• Walmart

What is the debt amount that Neiman Marcus is trying to alleviate?

• $4.3 billion

• $3.5 billion

• $5 billion

• $2 billion