Company control will move from parent company, Chinos Holdings to top creditors as part of their debt-for-equity restructuring.
J. Crew's e-commerce business will continue and at least two brick-and-mortar stores will open once lockdown restrictions have eased.
"This agreement with our lenders represents a critical milestone in the ongoing process to transform our business," CEO Jan Singer told The New York Times.
Started in 1947, J. Crew was the first mass-market brand allowed to present part of its line at New York Fashion Week in 2011.
It is just one retail company that has been hit hard by the coronavirus pandemic. Though J. Crew is the first to file for bankruptcy, it is widely acknowledged that it likely will not be the last.
Compiled by Afika Jadezweni