While a raft of non-essential retailers have succumbed to Chapter 11 bankruptcy since the pandemic forced store shutdowns, J.Jill has reached a definitive agreement with its lenders to avoid that fate in an out-of-court settlement.
J.Jill’s lenders have agreed to give the company an
additional two years, through May 2024, to pay off its term-loan debt and to
provide an investment of “no less than $15 million” in the form of a
junior term-loan facility. The funds will provide “additional liquidity and
financial flexibility” for the specialty retailer to meet its obligations to
vendors and execute its business plan, the company said in a release.
Term loan lenders holding 97.8% of the outstanding principal amount under the company’s term loan facility, and shareholders holding a majority of the equity in the company, support the transaction. If J.Jill had not received backing from at least 95% of its lenders, the