Twitter’s Response to J.Crew’s Bankruptcy Filing Was Wild – But There’s a Point to Make

J.Crew’s denouement has many Twitter threads spinning, from fans mourning the possible end of an iconic American brand to those dancing at the preppy label’s grave.

J.Crew Group Inc. filed for bankruptcy Monday, struggling with $1.65 billion in debt (which is converted to equity) and saying store closures during the COVID-19 pandemic cost him $900 million in sales.

The news took J.Crew to the top of Google GOOG,
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searches and go viral on Twitter TWTR,
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as one of the first big casualties of the coronavirus outbreak that has essentially crippled the US economy.

And, as you might expect, many Twitter users had sarcastic reactions to the news, including posts poking fun at the brand’s preppy aesthetic, or tweets claiming that the countless small, family-run businesses that don’t hanging by a thread at this time should be taken into account. the greatest tragedy.

Still others posted memes about gleefully awaiting J.Crew’s potential sales, claiming they couldn’t afford the retailer’s clothes otherwise. After all, Toys ‘R’ Us and Babies ‘R’ Us held liquidation sales when their stores closed in 2018. And retail analysts told MarketWatch that J. Crew “may have to become extremely aggressive,” which could include markdowns to help move inventory that has been sitting on shelves since the coronavirus shutdowns began, to boost cash.

But many responses on Twitter, while humorous and wild, actually have a point.

Several noted that J.Crew’s financial problems were terminal long before the pandemic hit.

The company barely avoided bankruptcy in 2017 when creative director Jenna Lyons and CEO Mickey Drexler quit, even as sales plummeted and debt mounted. J.Crew completely missed the “athleisure” trend.

Extract from MarketWatch archives (June 2017): J.Crew has a new CEO, but that won’t solve its debt problem

In fact, as Eric Snyder, partner at Wilk Auslander and chairman of the firm’s bankruptcy department, told MarketWatch on Monday: “Even if it hadn’t been for the pandemic, it wouldn’t have made a difference. .

Read more:J.Crew was struggling even before COVID-19 due to heavy debt burden and inability to keep up with trends

Others have decried the high prices of many J.Crew pieces at a time when Americans are strapped for cash and are turning to more affordable items from fast fashion retailers like Inditex-owned ITX.
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Zara and H&M Hennes and Mauritz HNNMY,
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economy big box stores like Walmart WMT,
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and target TGT,
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and online stores such as Amazon AMZN,
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But it’s also no surprise that the retailer’s struggle has sparked so much discussion.

J.Crew has been woven into pop culture since rolling out its mail-order catalog collection of chinos, pocket t-shirts and sweaters in the mid-1980s before becoming a staple of high street malls. of range. And many shoppers have embraced its mix of formal and informal pieces. First Lady Michelle Obama, who became a fashion icon during her husband’s presidential campaign and presidency, frequently dressed herself and her daughters in the mark. “Ladies, we know J.Crew. You can get good stuff online! she says while wearing a silk blouse, gold skirt and cardigan on “The Tonight Show With Jay Leno” in October 2008, for example.

And former J.Crew creative director Lyons has become a style icon in her own right with her signature chunky black glasses, and even made an appearance on HBO’s T,
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hit series “Girls” in 2014.

So, many J.Crew fans also mourned the downfall of their beloved brand on social media.

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