J.Crew Group, Inc. (“J.Crew Group” or the “Company”) today provided an update on its store re-openings at locations previously closed due to COVID-19 restrictions, and on its previously discussed real estate optimization strategy.
The Company is today re-opening 171 stores, bringing the total re-opened locations to 315, representing 64% of its total store fleet, following the temporary closure of all locations due to public health restrictions related to COVID-19. Based on a successful test re-opening of seven stores, J.Crew Group began a phased re-opening of its nearly 500 stores in May. The Company is taking a careful and deliberate approach to its store re-openings to ensure full implementation of appropriate safety protocols in line with CDC guidelines and government regulations to protect its customers, associates and local communities.
With the re-openings, J.Crew Group has reactivated the majority of its store associates from furlough. Due to strong business momentum and increased demand, the Company has added approximately 400 positions at its Lynchburg, VA distribution center. Job expansion at the distribution center, which supports J.Crew Group’s e-commerce businesses, stemmed from continued online sales momentum that was increasing even before stores were closed during the pandemic.
Real Estate Optimization Strategy
J.Crew Group also provided an update on its real estate optimization strategy, related specifically to discussions with landlords regarding improving store lease terms as part of its restructuring process and efforts to position the Company for long-term growth. J.Crew Group continues to have productive discussions with landlords regarding lease terms that will further inform its real estate optimization strategy. As part of its reorganization, J.Crew Group has filed notice with the U.S. Bankruptcy Court to reject 67 store leases. The Company will remove a store lease from the rejection list in the future if it reaches an acceptable resolution with the affected landlord.
The Company will provide further real estate optimization updates to the Court as appropriate.
Further information on J.Crew Group store re-openings is available at stores.jcrew.com.
About J.Crew Group, Inc.
J.Crew Group, Inc. is an internationally recognized omnichannel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of June 12, 2020, the Company operates 181 J.Crew retail stores, 140 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com and 170 factory stores. Certain product, press release and SEC filing information concerning the Company are available at the Company’s website www.jcrew.com.