J.Jill Inc. finally completed its out-of-court financial restructuring with lenders.
The transaction closed on Sept. 30.
Under the terms of the agreement with lenders, the women’s specialty retailer receives at least $15 million in new capital, while the maturity of certain of its term loan debt has been extended to May 2024. J.Jill says the arrangement means it can meet its vendor obligations in full, and offers the financial reserves to move forward with its business plan.
“We are pleased to have successfully completed this comprehensive financial restructuring, and we thank our customers, associates, vendors and landlords for the dedication and support they have given us these past few months,” said CEO Jim Scully.
While working with lenders on the restructuring, the company rationalized the number of floorsets, catalogs and style count, an effort to better manage inventory and uncover profitability-boosting efficiencies. “By shifting certain roles and responsibilities and eliminating open positions, we were able to minimize furloughs and headcount reductions as we managed through these challenging times,” Scully added.
And while the challenges of the Covid-19 pandemic are ongoing, Scully said the company’s financial flexibility and enhanced operating model, as well as loyal customers, should help to drive sustainable results for shareholders.
The retailer will effectuate a reverse stock split, to be determined by the board of directors, to satisfy listing requirements of the New York Stock Exchange. The reverse split is expected to be in the range of 1-for-3 and 1-for-10 to regain compliance with the minimum price requirement of $1.00 per share. The reverse stock split will also result in the reduction of the number of authorized shares of common stock.