J.Crew

bankrupt

Retail — TPG / Leonard Green

Deal Terms

Entry Year2011

Entry EV$3B

Entry Multiple9x

Leverage5.5x

Debt Amount$1.7B

Outcome

Exit Year2020

Risk Metrics

LTV (est.)57%

Debt / EV0.57x

Notes

$3B LBO by TPG/Leonard Green. Sponsors extracted $765M in fees and dividends. Forced J.Crew to borrow $787M more for dividend recaps. $1.7B debt at bankruptcy. Filed May 2020 — first major COVID retail bankruptcy. Brand value systematically destroyed by financial extraction.

Sponsor

TPG Inc.$230B AUM

Hot Potato History

1983→Public Market

2011→TPG + Leonard Green & Partners($3B)

2020→Post-bankruptcy (Anchorage Capital + GSO)($0.4B)

Emerged from bankruptcy 2020. Third PE cycle underway. Fraction of former scale.