“Bummed about J.Crew because where else am I gonna find a $145 sun dress with grapefruits on it?” Good news: That sundress might go on major sale.
For J.Crew fans, there’s some finely-tailored silver lining on the news of the upscale preppy clothing retailer’s bankruptcy — the court case could translate into future price reductions for shoppers, according to experts on bankruptcy in the retail industry.
The company’s J.Crew, J.Crew Factory and Madewell websites continue to operate, and the company said it looks forward to reopening brick-and-mortar stores “in accordance with CDC guidance as quickly and safely as possible.” — Marshal Cohen, chief retail analyst at NPD Group The bankruptcy case, filed in the Eastern District of Virginia Bankruptcy Court, will not affect the price of merchandise at stores, the company said on its website.
“There will be markdowns,” said attorney David Wander, a partner at the New York-based law firm Davidoff Hutcher & Citron, where he represents creditors, debtors, vendors, landlords and others during bankruptcy proceedings. At the same time, data suggests that some consumers might be ready to pounce on deals, just as some states are relaxing shutdown rules.Retail sales in the week ending April 25 were down by double digits from a year earlier, according to NPD Group data. But those sales as of April 25 were up 16% from one week earlier, the firm said.
The real bankruptcy-driven bargains could come with off-season items, he said. J.Crew’s Spring collection will see the heaviest discounts, Cohen said, adding that — like many apparel stores — the retailer will need to prepare for the summer for back-to-school shopping.J.Crew has approximately 500 stores across the world and prior to the outbreak, it had 4,000 full-time employees and 9,000 part-time employees, according to court papers filed in the bankruptcy case.
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