Just as some credit sources last week began speculating about the future of J. Jill and whether it could be put up for sale, given the bankruptcy filing of its parent in March, Moody’s Investors Service on Monday placed the retailer’s ratings on review for a possible downgrade.
About $115 million of rated debt is affected, and there is now the possibility of a default rating.
Arcapita Inc. is a U.S. subsidiary that was formerly known as Crescent Investments, which invests in American firms for between $200 million and $1 billion. It includes among its holdings women’s apparel retailer J. Jill. None of Arcapita’s operating subsidiaries nor its portfolio firms are parties to the filing.
That didn’t stop credit analysts from wondering last week whether J. Jill at some point might be put on the auction block due to the bankruptcy filing of Arcapita.
Moody’s said its reason for the review is because the firm “has not provided audited statements as of Jan. 28, 2012, as required under its loan agreements,” as well as an agreement with lenders stating they would hold off enforcing certain obligations due to some technical defaults under the same lending contracts.
The ratings agency said the review for downgrade will focus on the firm’s ability to obtain a permanent waiver and amendment under its loan agreements, as well as the operating performance of the company.
Private equity firm Golden Gate Capital acquired J. Jill from The Talbots Inc. in 2009, and sold the operation to Arcapita in 2011.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion