J.Crew Group, Inc. (the “Company”) provided an update on its real estate optimization strategy and its discussions with landlords regarding improving store lease terms as part of its restructuring process and efforts to position the Company for long-term growth.
As of August 9, the Company has reached agreements with landlords to improve lease terms on its J.Crew and Madewell store portfolio. The Company expects to realize significant lease savings over the remaining terms of these leases. Through this process, the Company expects to achieve cash savings of approximately $70 million, which includes the benefit of one-time waivers and deferrals, in 2020, and approximately $60 million in 2021, assuming sales are in line with projections.
As of August 9, the Company has re-opened 458 stores, representing approximately 95% of its total store fleet, following the temporary closure of all locations due to public health restrictions related to COVID-19. With the re-openings, the Company has reactivated the vast majority of its store associates from furlough.
The Company will continue to take a careful approach with respect to ongoing store operations to ensure compliance with appropriate safety protocols in line with CDC guidelines and government regulations to protect its customers, associates and local communities.
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 August 10, 2020, the Company operates 178 J.Crew retail stores, 145 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.