Blackstone's GSO snaps up J Crew's debt in restructuring gambit

New York

GSO Capital Partners, private equity firm Blackstone Group LP's credit arm, is acquiring more of J Crew Group Inc's debt, hoping for a profitable trade that could also give the US fashion retailer more time to stave off bankruptcy, people familiar with the matter said.

Sales have been declining as J Crew, whose ballet flats and cash-mere cardigans were once a staple of middle-class US wardrobes, struggles to keep abreast of changing tastes and faces fierce competition from cheaper online retailers. It now has US$2.1 billion in debt.