NEW YORK—In what is the first major retail bankruptcy since thenovel coronavirus struck the US, J Crew has filed for Chapter 11protection.

The retailer announced Monday morning that it has reached anagreement with its lenders to restructure its debt and deleverageits balance sheet. Under the terms of the agreement lenders willconvert approximately $1.65 billion of the J. Crew's debt intoequity. J. Crew will receive $400 million in debtor-in-possessionfinancing from its lenders to help it restructure.

It is unclear if it plans to close any stores as part of therestructuring but the retailer has said that "it looks forward toreopening its stores in accordance with CDC guidance as quickly andsafely as possible."

"The Chapter 11 process will not prevent us from reopening ourstores," it also said.

J. Crew will continue all day-to-day operations, "albeit underthese extraordinary COVID-19-related circumstances," said JanSinger, CEO of the J. Crew Group.

As of May 4, 2020, the company operates 181 J.Crew retailstores, 140 Madewell stores, jcrew.com, jcrewfactory.com,madewell.com and 170 factory stores.

J. Crew may be the first retailer to succumb to the pressures ofCovid-19, but it surely won't be the last. Neiman Marcus, JCPenneyand Lord & Taylor are all reportedly exploring bankruptcy rightnow.