NEW YORK (AP) – Struggling fashion brand J.Crew has filed for bankruptcy protection, the first major retailer to do so since the coronavirus pandemic forced most stores across the United States to close their doors.
More retail bankruptcies are expected in coming weeks, with Neiman Marcus and J.C. Penney also facing problems. Gap Inc. has warned it is running out of cash and is looking for an infusion.
Thousands of retail stores across the country remain closed, though some states have begun staggered restarts of their economies.
J.Crew, like a number of major retailers, was already in trouble before the pandemic. It had grown from a preppy 1990s fashion staple to an “it” brand worn by former First Lady Michelle Obama and featured at New York Fashion Week. But at some point in recent years, its fashion choices began landing with a clunk in the highly competitive retail sector.
Clothes will still be available online and the company says it will reopen stores when it’s safe to do so, but industry analysts are skeptical about a second act.