In announcing its bankruptcy filing on Monday, J.Crew said it hopes the move will help it get its finances in order while the company keeps running , though for now under COVID-19 restrictions.

"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," Jan Singer, CEO of J.Crew Group, said in a statement.

Now malls and stores are slowly starting to reopen in some parts of the country, but it's unclear how quickly Americans will go back to spending on clothes and accessories given staggering unemployment .

J.Crew had narrowly avoided bankruptcy in recent years as its debt ballooned to nearly $1.7 billion, growing since the leveraged buyout by private-equity firms took it private in 2011 .

The retailer, known for straight silhouettes and preppy styles without the luxury price tag, gained praise as a favorite of former first lady Michelle Obama.

J.Crew recently planned to pay down some of that debt through an infusion of cash from spinning off its more casual and youthful subsidiary brand Madewell.