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J. Crew Mulls Bankruptcy Under Pressure From Debt and Pandemic

  • Restructuring plan could include a Chapter 11 filing
  • Coronavirus shutdown upends management’s turnaround campaign
An employee arranges shirts at J. Crew store in Hong Kong, China.

An employee arranges shirts at J. Crew store in Hong Kong, China.

Photographer: Brent Lewin/Bloomberg

J. Crew Group Inc. is preparing a potential bankruptcy filing as the coronavirus epidemic spoils the preppy retailer’s plan to turn around flagging sales and cut its crushing debt load.

No formal decisions have been made, but J. Crew has held initial talks with lenders about a potential bankruptcy loan that would keep the company running while it works out a recovery plan, according to people with knowledge of the situation.