J.Jill Completes Previously Announced Financial Restructuring Transaction
September 30 2020 - 4:05PM
Business Wire
- Completes organizational alignment to evolve
the operating model
- Announces Proposed Reverse Stock Split
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.
Additional information regarding the Transaction can be found in
our Current Report on Form 8-K to be filed with the Securities and
Exchange Commission and available on www.sec.gov.
About J.Jill
J.Jill is a premier omnichannel retailer and nationally
recognized women’s apparel brand committed to delighting customers
with great wear-now product. The brand represents an easy,
thoughtful and inspired style that reflects the confidence of
remarkable women who live life with joy, passion and purpose.
J.Jill offers a guiding customer experience through more than 280
stores nationwide and a robust e-commerce platform. J.Jill is
headquartered outside Boston. For more information, please visit
www.jjill.com or http://investors.jjill.com.
Forward Looking Statements
This press release contains, and oral statements made from time
to time by our representatives may contain, “forward-looking
statements.” Forward-looking statements include those identified by
words such as “could,” “may,” “might,” “will,” “likely,”
“anticipates,” “intends,” “plans,” “outlook,” “seeks,” “believes,”
“estimates,” “expects,” “continues,” “projects” and similar
references to future periods, or by the inclusion of forecasts or
projections. Forward-looking statements are based on our current
expectations and assumptions regarding capital market conditions,
our business, the economy and other future conditions. Because
forward-looking statements relate to the future, by their nature,
they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. As a result, our
actual results may differ materially from those contemplated by the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to: the
Company’s ability to achieve the potential benefits of the
Transaction; the impact of the COVID-19 epidemic and political
unrest on the Company and the economy as a whole; the Company’s
ability to regain compliance with the continued listing criteria of
the NYSE; the Company’s ability to execute the reverse stock split
and to continue to comply with applicable listing standards; risks
arising from the potential suspension of trading of the Company’s
common stock on the NYSE; regional, national or global political,
economic, business, competitive, market and regulatory conditions,
including risks regarding our ability to manage inventory or
anticipate consumer demand; changes in consumer confidence and
spending; our competitive environment; our failure to open new
profitable stores or successfully enter new markets and other
factors set forth under “Risk Factors” in our Annual Report on Form
10-K for the fiscal year ended February 1, 2020, as updated by our
Quarterly Report on Form 10-Q for the quarterly period ended August
1, 2020. There can be no assurance that following the reverse stock
split, if consummated, the Company's common stock will remain above
the $1.00 per share minimum for the requisite period prior to, and
as of, the last day of the NYSE cure period, to regain listing
compliance. In the event the Company does not regain compliance
with the minimum price criteria, its common stock may be subject to
delisting from the NYSE, which, in turn, will result in significant
adverse effect on the value and liquidity of the Company's common
stock. Any forward-looking statement made in this press release
speaks only as of the date on which it is made. J.Jill undertakes
no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future
developments or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200930005861/en/
Investor Contact: Caitlin Churchill ICR, Inc.
investors@jjill.com 203-682-8200 Media Contact: Jessica Liddell
ICR, Inc. jjillPR@icrinc.com 203-682-8200
J Jill (NYSE:JILL)
Historical Stock Chart
From Aug 2024 to Sep 2024
J Jill (NYSE:JILL)
Historical Stock Chart
From Sep 2023 to Sep 2024