J. Jill Inc. has just 10 days to get permission from the vast majority of its lenders for a deal that would extend the struggling retailer’s debt maturities, excuse it from financial covenants and give it fresh cash.
The company said in a statement Tuesday that it plans to file for bankruptcy if it fails to get lenders holding 95% of its term loans on board with the plan by Sept. 11. It’s struck a deal with lenders holding 70% of the debt to extend certain debt maturities to 2024, grant a financial covenant holiday and provide for at least $15 million of new cash in the form of a junior term loan.
If the Quincy, Massachusetts-based company files for bankruptcy, the company has an accord with lenders to get at least $75 million of debtor-in-possession financing that will convert to a term loan.
The pandemic forced the women’s clothing retailer to temporarily close its more than 280 U.S. stores in March. Lenders agreed to hold off on taking immediate action against the company after it violated terms of its loans, J. Jill said in a June news release.
Read more: Women’s Retailer J. Jill Avoids Bankruptcy For Now
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