J. Crew Is Being Prosecuted By Creditors On The Eve Of Bankruptcy.

According to the world clothing and shoe net, it is trying to restructure itself.

Group Inc. was beset with difficulties. On Friday, the 8K document submitted by the company to SEC showed that its parent company Chinos Intermediate Holdings A, Inc. and creditors had not reached an agreement on debt restructuring.

More importantly, J. Crew Group Inc. will be the core of the group.

The intellectual property rights of J. Crew have been stripped off for $250 million. At present, creditors have initiated lawsuits, requiring companies to withdraw the pfer of assets.

The market thinks that creditors' contention for IP means that J. Crew Group Inc. is on the eve of bankruptcy.

At the end of last month, Moody's Investors Service, a rating agency, Moodie warned of the Chinos default probability rating from Caa2 to Caa3.

Moodie acknowledges the efforts of J. Crew Group Inc. to reduce costs, but the recovery of the group must require consumers to regress to stimulate sales growth in the same store, but this is very difficult for J. Crew Group Inc..

In the first 7 weeks of the current fiscal year 2017, the sales of the same brand of the J. Crew Group Inc. group increased to 14%, while the decline in the fourth quarter of the 2016 fiscal year and the whole year were 7% and 8% respectively. Although the group's other brand Madewell Madewell brand increased by 6% and 5% in the fourth quarter of the 2016 fiscal year and the whole year, the brand accounted for only 15% of the group's income, and the successful strategy of Madewell centered on jeans has attracted other retailers to follow suit.

In the annual report released at the end of March, Mickey Drexler, the group's chief executive, said the Group expects to remain unable to reverse the difficulties in fiscal year 2017.

The group has a long term debt of $1 billion 494 million 500 thousand at the end of 2016, and the group is currently working with the "creditor".

At the end of last year, the Group requested the court to approve its split of the J.Crew trademark's 72% of the US trademark right to an independent subsidiary to avoid being hijacked by the creditor, which is worth about 250 million US dollars.

It also proves that Mickey Drexler is actually ready for the worst outcome of Group bankruptcy.

Although the US retailers are currently in frequent bankruptcies, the J. Crew Group Inc. group not only has an annual income of $2 billion 400 million, but also has a retail Godfather Mickey Drexler and Mrs. Michel Obama's favorite brand of the president's two rings. If the group goes bankrupt, its impact will be even more far-reaching.

Earlier this month, the group also announced that the group president and creative director, Jenna Lyons, left the industry extremely shocked.

Jenna Lyons has always been the "woman behind the Millard Drexler". In 2012, she was promoted to the present position, and officially became the most dazzling star in the dress industry.

In 2013, Jenna Lyons was not only on the cover of the magazine, but also the magazine's "100 most influential people in the world", and Michael Ltd, Uniqlo, founder of Michael Kors Holdings Ltd (KORS.N).

The parent company Fast Retailing Co. Ltd. (9983.T) fast Marketing Group CEO Tadashi Yanai Ryui Masa became the only three fashion retailer on the list, and Jenna Lyons was the only non founder of the three place, not even CEO.

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