J.Jill Completes Previously Announced Financial Restructuring Transaction
J.Jill, Inc. (NYSE:JILL) (the “Company”) today provided an update on the comprehensive actions taken to evolve and position the Company for future success following the completion of the previously announced financial restructuring transaction (“Transaction”).
The Transaction, which closed on September 30, 2020, provides the Company with no less than $15 million of new capital and extends the maturity of certain participating term loan debt to May 2024. The Transaction is expected to provide J.Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan.
“We are pleased to have successfully completed this comprehensive financial restructuring, and we thank our customers, associates, vendors and landlords for the dedication and support they have given us these past few months,” said J.Jill CEO Jim Scully.
“While we were working closely with our lenders to complete our financial restructuring, we were also examining our operating model to identify efficiencies by rationalizing the number of floorsets, catalogs, and style count, allowing us to focus on our inventory management and ultimately enhance overall profitability going forward. By shifting certain roles and responsibilities and eliminating open positions, we were able to minimize furloughs and headcount reductions as we managed through these challenging times.
“Despite the ongoing challenges of the pandemic, we believe that J.Jill has the financial flexibility, with an enhanced operating model, a strong direct business, loyal customers, and a dedicated team to drive sustainable results for our shareholders,” added Mr. Scully.
In addition, the Company’s Board of Directors (“Board”), in consultation with its outside legal and financial advisors, determined that it is in the best interest of the Company’s shareholders to effectuate a reverse stock split, at a ratio to be determined by the Board that will be within a range of 1-for-3 and 1-for-10, in conjunction with the Transaction, to satisfy the New York Stock Exchange (the “NYSE”) listing requirements. The Company intends to effectuate the reverse stock split to regain compliance with the minimum price requirement of $1.00 per share for continued listing on the NYSE. In connection with the reverse stock split, the number of authorized shares of common stock of the Company will be reduced proportionately, effective concurrently with the effectiveness of the reverse stock split. The Company’s majority shareholder has taken action by written consent to approve the reverse stock split and authorized share reduction. The Company expects to file an information statement with the Securities and Exchange Commission in connection with its majority shareholder’s approval of the reverse stock split and authorized share reduction, and such actions will not become effective until at least 20 calendar days after the Company distributes the information statement.