While the promotional products industry suffers during the coronavirus pandemic, the retail industry is going through a tumultuous period, too.

J.Crew Group, which operates the J.Crew and Madewell brands, has become the first national retailer to file for bankruptcy protection since the coronavirus pandemic began. On Monday, the clothing retailer filed to begin Chapter 11 proceedings in federal bankruptcy court in the Eastern District of Virginia, CNN Business reported. The company said it has reached a deal with its lenders to convert about $1.65 billion of debt into equity.

The company that owns J.Crew is filing for Chapter 11 bankruptcy as the falloff in economic activity hammers the retail sector. The fashion brand was acquired by TPG Capital and Leonard Green & Partners for $3 billion in 2011. https://t.co/v17colOOfX

— The Associated Press (@AP) May 4, 2020

A bankruptcy filing doesn't necessarily mean a company will completely shut down – many companies use bankruptcy to shed debt and other liabilities while closing unprofitable operations and locations. J.Crew (the preppy clothing brand) and Madewell (the popular denim brand that had been slated for an IPO) will both remain part of the business, the retailer said.

“Throughout this process, we will continue to provide our customers with the exceptional merchandise and service they expect from us, and we will continue all day-to-day operations, albeit under these extraordinary COVID-19-related circumstances,” Jan Singer, CEO of J.Crew Group, said in a press release. “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.”

As of May 7, J.Crew has been joined in bankruptcy by Neiman Marcus, the venerated retailer of luxury brands. In a press release, the company said it received $675 million in financing from creditors to keep running the business, as well as $750 million to hopefully get out of bankruptcy by “early fall.” The creditors will become majority owners as the company expects to eliminate $4 billion in debt. MyTheresa.com, the luxury retailer that Neiman Marcus Group bought in 2014 and later transferred to a separate entity, is not included in the filing.

In a letter to customers, Geoffroy van Raemdonck, chief executive of Neiman Marcus, said the company was not liquidating and would come out of bankruptcy “a stronger company with the ability to better serve you and continue our transformation over the long term.” J.C. Penney has also recently explored filing for bankruptcy protection, The New York Post reported.

JC Penney, Neiman Marcus, Hertz and now J Crew among the many co's headed into bankruptcy. Lots more to come. Recovery going to be long and tough. https://t.co/aY07FupjGQ

— Steven Rattner (@SteveRattner) April 30, 2020

Agencies like Moody’s and S&P Global Ratings have slashed credit ratings for many struggling retailers, The Washington Post reported. This leaves companies like J.Crew, Neiman Marcus and J.C. Penney with little hope to access corporate bonds or government stimulus money reserved for companies in healthy financial shape.

As a result of the coronavirus pandemic, state lockdowns have forced the temporary closures of 263,000 stores, according to GlobalData Retail. Retail sales plummeted 8.7% in March, their worst drop on record, the U.S. Census Bureau reported. Though the promotional industry has traditionally lagged behind retail, the two sectors have become more closely aligned in recent years.