File Photo: Xinhua

 J. Crew Group, a U.S. apparel retailer which also operates the Madewell brand, has filed for bankruptcy protection, as the COVID-19 fallout continues to ripple through the nation.

It has filed to begin Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia, according to a statement by the company on Monday.

The company said its lenders have agreed to convert approximately 1.65 billion U.S. dollars of its debt into equity.

Meanwhile, it has secured commitments for a debtor-in-possession financing facility of 400 million dollars and committed exit financing provided by existing lenders Anchorage Capital Group, L.L.C., GSO Capital Partners and Davidson Kempner Capital Management LP, among others.

"This agreement with our lenders represents a critical milestone in the ongoing process to transform our business with the goal of driving long-term, sustainable growth for J. Crew and further enhancing Madewell's growth momentum," Jan Singer, chief executive officer of J.Crew Group, said in the statement.

"Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances," Singer added.

The coronavirus pandemic has caused widespread business shutdowns across the United States and a wave of data showed the economic hammer blow from the pandemic.

The Commerce Department reported last week that U.S. real gross domestic product in the first quarter contracted at an annual rate of 4.8 percent, the biggest quarterly decline since the 2008 financial crisis.

J. Crew began in 1983 as a catalog retailer, before opening its first store in New York City in 1989.

Currently, the company operates 181 J.Crew retail stores, 140 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com and 170 factory stores.