J.Crew Group Inc. has announced its filing of Chapter 11 proceedings in federal bankruptcy court.

The company said in a statement early Monday that Chinos Holdings—the parent company of J.Crew Group Inc.—has filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Eastern District of Virginia. Additionally, the company has reached an agreement in which lenders will convert approximately $1.65 billion of debt into equity.

As CNN and others point out, a bankruptcy move doesn't necessarily mean that a company will be put of business outright, though many have placed emphasis on the timing of the filing amid COVID-19 retail struggles. In Monday's press release, Jan Singer—J.Crew Group’s CEO—mentioned the novel coronavirus' impact on the company’s daily operations.

"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 said. "As we look to reopen our stores as quickly and safely as possible, this comprehensive financial restructuring should enable our business and brands to thrive for years to come."

Meanwhile, Anchorage Capital Group CEO Kevin Ulrich touted the "significant deleveraging" at the heart of this agreement.

"J.Crew and Madewell are two classic American brands with deeply loyal customers," Ulrich said. "We look forward to supporting Jan, Libby and the management team to recognize their full potential."

In April, True Religion was announced as having filed for bankruptcy, with the brand specifically citing COVID-19 as a reason.

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