J.Crew is reportedly planning to file for bankruptcy

• J.Crew is reportedly planning to file for bankruptcy.
• The clothing retailer, which operates its namesake brand in addition to Madewell, has been struggling under a heavy debt load.
• J.Crew declined to comment on the reports.
• Visit Business Insider's homepage for more stories.

J.Crew Group, which operates J.Crew and Madewell, is planning to file for bankruptcy, CNBC first reported, citing people familiar with the order. These people said the filing could happen this upcoming weekend.

J.Crew declined to comment on the reports.

The clothing retailer has been struggling under a heavy debt load for some time. According to the Wall Street Journal, it had planned to leverage a 2020 IPO of its popular Madewell brand to lessen its debt. However, plans for the IPO were abandoned near the end of March as the company failed to reach a deal with lenders.

J.Crew had nearly $1.7 billion in debt as of February.

The retailer has had its ups and downs in recent years. After going private in a leveraged buyout by TPG and Leonard Green & Partners in 2011, it experienced a bit of an identity crisis, raising prices when many shoppers were seeking more budget-conscious options, which former CEO Mickey Drexler later told the Journal was the retailer's biggest mistake.

Drexler left his post in 2017 after 14 years as CEO. J.Crew also lost longtime creative director Jenna Lyons and narrowly avoided bankruptcy around the same time.

Like many other retailers, J.Crew's problems have been exacerbated by the coronavirus pandemic. It was forced to temporarily close its doors as states enacted restrictions on nonessential businesses.

Madewell, which J.Crew launched in 2006, has been a bright spot for the company. But during the pandemic, even Madewell is running unprecedented sales seemingly in a bid to off-load inventory.

J.Crew reported that comparable sales for the company increased by 2% for the 2019 fiscal year, with comparable sales growing 10% at Madewell and shrinking 1% at J.Crew.

The company had 182 J.Crew stores, 140 Madewell stores, and 170 J.Crew Factory stores as of the beginning of March.

Are you a J.Crew or Madewell employee with a story to share? Contact this reporter at mstone@businessinsider.com.