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J. Crew Seeks Debt Swap to Buy Time as Sales Dive Continues

  • Retailer reports a decline in same-store sales and revenue
  • Company offers to exchange 2019 notes for debt due in 2021
Women's clothing and apparel sits on display inside a J. Crew Group Inc. fashion clothing store ahead of its official opening, in Paris, France, on Wednesday, March 4, 2015. J. Crew is increasingly looking overseas for growth, opening stores in London, Hong Kong, Canada and Paris and also expanding its offshoot Madewell brand.
Photographer: Marlene Awaad/Bloomberg
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J. Crew Group Inc., struggling from almost three years’ worth of declining sales, asked bondholders to extend the maturity of $566.6 million in notes and said it planned to settle a lawsuit filed by lenders.

The debt-laden retailer started a private offer to exchange 2019 pay-in-kind notes for an equity stake and bonds that mature in 2021. At least 95 percent of bondholders must accept the proposal for it to proceed.