##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-K/A

(Amendment No. 1)





(Mark One)

|☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended January 28, 2017

OR



|☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period
from             to

Commission File Number 001-38026





J.Jill, Inc.

(Exact name of Registrant as specified in its Charter)





|                                                               |  |                                    
|-------------------------------------------------------------- |  | -----------------------------------
|Delaware                                                       |  | 45-1459825                         
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. EmployerIdentification No.)
|4 Batterymarch Park Quincy, MA                                 |  | 02169                              
|(Address of principal executive offices)                       |  | (Zip Code)                         

Registrants telephone number, including area code: (617) 376-4300





Securities registered pursuant to Section 12(b) of the Act:



|                              |  |                                          
|----------------------------- |  | -----------------------------------------
|Title of each class           |  | Name of each exchange on which
registered
|Common Stock, $0.01 par value |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes  ☐    No  ☒

Indicate by check mark if the Registrant is not required
to file reports pursuant to Section 13 or 15(d) of the Act.    Yes  ☐    No  ☒

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the Registrant has
submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will
not be contained, to the best of Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an
emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                |  |                         |  |  
|----------------------- |  | ---------------------------------------------- |  | ----------------------- |  | -
|Large accelerated filer |  | ☐                                              |  | Accelerated filer       |  | ☐
|Non-accelerated filer   |  | ☒  (Do not check if a small reporting company) |  | Small reporting company |  | ☐
|                        |  |                                                |  | Emerging growth company |  | ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes  ☐     No  ☒

The aggregate market value of the voting and non-voting
common equity held by non-affiliates of the Registrant, based on the closing price of the shares of common stock on NYSE Stock Market on April 21, 2017, was $194,290,605.20.

The number of shares of Registrants Common Stock outstanding as of April 21, 2017 was 43,747,944.









---

##### Table of Contents

EXPLANATORY NOTE

J.Jill, Inc. (the Company, we, us or our) is filing this Amendment No. 1 on Form 10-K/A (this
Amendment) to amend our Annual Report on Form 10-K for the year ended January 28, 2017, originally filed with the Securities and Exchange Commission on April 28, 2017 (the Original Filing). The Report of Independent
Registered Public Accounting Firm on page F-2 under Item 8 of the Original Filing incorrectly referenced January 30, 2017 instead of January 28, 2017 with respect to the year ended date of the consolidated statements of
operations and cash flows. The Amendment is being filed solely to correct the applicable date in the Report of Independent Registered Public Accounting Firm. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, Item
8 of the Original Filing is hereby amended and restated in its entirety. This Amendment No. 1 does not amend or otherwise update any other information in the Original Filing.

TABLE OF CONTENTS



|        |  |                                                     |  |     
|------- |  | --------------------------------------------------- |  | ----
|        |  |                                                     |  | Page
|        |  |                                                    
|PART II |  | Item 8. Financial Statements and Supplementary Data |  | 2   
|        |  |                                                    
|PART IV |  | Item 15. Exhibits, Financial Statement Schedules    |  | 2   



1



---

##### Table of Contents

PART II

Item 8. Financial Statements and Supplementary Data

The financial statements required to be filed pursuant to this Item 8 are appended to this report. An index of those financial statements
is found in Item 15.

PART IV

Item 15. Exhibits, Financial Statement Schedules

(a)(1) Financial Statements.

See the Index
to Consolidated Financial Statements on page F-1 below for the list of financial statements filed as part of this report.

(a)(2) Financial
Statement Schedules.

All schedules have been omitted because they are not required or because the required information is given in the
Consolidated Financial Statements or Notes thereto set forth below beginning on page F-1.

(a)(3) Exhibits.

See the Exhibit Index immediately following the signature page of this Annual Report on Form 10-K/A. The exhibits listed in the Exhibit Index
below are filed or incorporated by reference as part of this Annual Report on Form 10-K/A.



2



---

##### Table of Contents

J.Jill, Inc.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



|                                                                                                                                                                                                                                                                                                                             |  |  |     | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | --- | 
|Report of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                      |  |  | F-2 | 
|                                                                                                                                                                                                                                                                                                                             | 
|Audited Consolidated Financial Statements                                                                                                                                                                                                                                                                                    |  |  |     | 
|Consolidated Balance Sheets as of January 
28, 2017 (Successor) and January 30, 2016 (Successor)                                                                                                                                                                                                                             |  |  | F-4 | 
|Consolidated Statements of Operations and Comprehensive Income (Loss) for the
 Fiscal Year Ended January 28, 2017 (Successor), the Period from May 8, 2015 through January 30, 2016 (Successor), the Period from February 1, 2015 through May 7, 2015 (Predecessor) and the Fiscal Year Ended January 31,
2015 (Predecessor) |  |  | F-5 | 
|Consolidated Statements of Members Equity for the Fiscal Year Ended January 28,
 2017 (Successor), the Period from May 8, 2015 through January 30, 2016 (Successor), the Period From February 1, 2015 through May 7, 2015 (Predecessor) and the Fiscal Year Ended January 31, 2015 (Predecessor)                            |  |  | F-6 | 
|Consolidated Statements of Cash Flows for the Fiscal Year Ended January 28,
 2017 (Successor), the Period from May 8, 2015 through January 30, 2016 (Successor), the Period from February 1, 2015 through May 7, 2015 (Predecessor) and the Fiscal Year Ended January 31, 2015 (Predecessor)                                 |  |  | F-7 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                   |  |  | F-8 | 



F-1



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of J.Jill, Inc.

In
our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations and comprehensive income (loss), of members equity and of cash flows present fairly, in all material respects, the financial
position of J.Jill, Inc. and its subsidiaries as of January 28, 2017 and January 30, 2016, and the results of their operations and their cash flows for the year ended January 28, 2017 and for the period from May 8, 2015 to
January 30, 2016 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

April 28, 2017



F-2



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of J.Jill, Inc.

In
our opinion, the consolidated statements of operations and comprehensive income (loss), of members equity and of cash flows for the period from February 1, 2015 to May 7, 2015 and for the year ended January 31, 2015 present
fairly, in all material respects, the results of operations and cash flows of J.Jill, Inc. and its subsidiaries (Predecessor) for the period from February 1, 2015 to May 7, 2015 and for the year ended January 31, 2015 in conformity
with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our
audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 3 to the consolidated financial statements, the Company changed the manner in which it classifies deferred taxes and the manner in which
it classifies debt issuance costs in fiscal year 2015.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

October 21, 2016, except for the
effects of the corporate conversion as discussed in Note 1, Note 15 and Note 18, and the parent merger discussed in Note 18 as to which the date is February 25, 2017



F-3



---

##### Table of Contents

J.Jill, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)



|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | ------- |  | -------------------------- | - | ------- | 
|                                                                                                                                                  |  | January 28,2017(Successor) |         |  | January 30,2016(Successor) |  
|Assets                                                                                                                                            |  |                            |         |  |                            |   |         | 
|Current assets:                                                                                                                                   |  |                            |         |  |                            |   |         | 
|Cash                                                                                                                                              |  | $                          | 13,468  |  |                            | $ | 27,505  | 
|Accounts receivable                                                                                                                               |  |                            | 3,851   |  |                            |   | 3,164   | 
|Inventories, net                                                                                                                                  |  |                            | 66,641  |  |                            |   | 64,406  | 
|Prepaid expenses and other current assets                                                                                                         |  |                            | 18,559  |  |                            |   | 20,539  | 
|Receivable from related party                                                                                                                     |  |                            | 1,262   |  |                            |   |        | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Total current assets                                                                                                                              |  |                            | 103,781 |  |                            |   | 115,614 | 
|Property and equipment, net                                                                                                                       |  |                            | 102,322 |  |                            |   | 86,810  | 
|Intangible assets, net                                                                                                                            |  |                            | 163,483 |  |                            |   | 179,965 | 
|Goodwill                                                                                                                                          |  |                            | 197,026 |  |                            |   | 196,572 | 
|Receivable from related party                                                                                                                     |  |                            |        |  |                            |   | 1,850   | 
|Other assets                                                                                                                                      |  |                            | 1,033   |  |                            |   | 1,221   | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Total assets                                                                                                                                      |  | $                          | 567,645 |  |                            | $ | 582,032 | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Liabilities and Members Equity                                                                                                                   |  |                            |         |  |                            |   |         | 
|Current liabilities:                                                                                                                              |  |                            |         |  |                            |   |         | 
|Accounts payable                                                                                                                                  |  | $                          | 38,438  |  |                            | $ | 41,041  | 
|Accrued expenses and other current liabilities                                                                                                    |  |                            | 46,121  |  |                            |   | 43,591  | 
|Current portion of long-term debt                                                                                                                 |  |                            | 2,799   |  |                            |   | 2,500   | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Total current liabilities                                                                                                                         |  |                            | 87,358  |  |                            |   | 87,132  | 
|Long-term debt, net of discount and current portion                                                                                               |  |                            | 264,440 |  |                            |   | 237,478 | 
|Deferred income taxes                                                                                                                             |  |                            | 74,750  |  |                            |   | 78,837  | 
|Other liabilities                                                                                                                                 |  |                            | 20,132  |  |                            |   | 12,014  | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Total liabilities                                                                                                                                 |  |                            | 446,680 |  |                            |   | 415,461 | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Commitments and contingencies (see Note 11)                                                                                                       |  |                            |         |  |                            |   |         | 
|Members Equity                                                                                                                                   |  |                            |         |  |                            |   |         | 
|Common units, zero par value, 1,000,000 units authorized, issued and outstanding at
January 28, 2017 (Successor) and January 30, 2016 (Successor) |  |                            |        |  |                            |   |        | 
|Contributed capital                                                                                                                               |  |                            | 107,878 |  |                            |   | 162,265 | 
|Accumulated earnings                                                                                                                              |  |                            | 13,087  |  |                            |   | 4,306   | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Total members equity                                                                                                                             |  |                            | 120,965 |  |                            |   | 166,571 | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 
|Total liabilities and members equity                                                                                                             |  | $                          | 567,645 |  |                            | $ | 582,032 | 
|                                                                                                                                                  |  |                            |         |  |                            |   |         | 

The accompanying notes are an integral part of these consolidated financial statements.



F-4



---

##### Table of Contents

J.Jill, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

(in thousands, except share and per share data)



|                                                                        |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|----------------------------------------------------------------------- |  | --------------------------------------- | ---------- |  | ----------------------------------------------- | - | ---------- | ------------------------------------------------ |  | - | --------------------------------------- | - |  | - | ---------- | 
|                                                                        |  | Successor                               |            |  | Predecessor                                     |  
|                                                                        |  | For the FiscalYear EndedJanuary 28,2017 |            |  | For the Periodfrom May 8,2015 toJanuary 30,2016 |   |            | For the Periodfrom February 1,2015 to May 7,2015 |  |   | For the FiscalYear EndedJanuary 31,2015 |  
|Net sales                                                               |  | $                                       | 639,056    |  |                                                 | $ | 420,094    |                                                  |  | $ | 141,921                                 |   |  | $ | 483,400    | 
|Costs of goods sold                                                     |  |                                         | 211,117    |  |                                                 |   | 155,091    |                                                  |  |   | 44,232                                  |   |  |   | 164,792    | 
|                                                                        |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Gross profit                                                            |  |                                         | 427,939    |  |                                                 |   | 265,003    |                                                  |  |   | 97,689                                  |   |  |   | 318,608    | 
|Selling, general and administrative expenses                            |  |                                         | 368,525    |  |                                                 |   | 246,482    |                                                  |  |   | 80,151                                  |   |  |   | 279,557    | 
|Acquisition-related expenses                                            |  |                                         |           |  |                                                 |   |           |                                                  |  |   | 13,341                                  |   |  |   |           | 
|                                                                        |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Operating income                                                        |  |                                         | 59,414     |  |                                                 |   | 18,521     |                                                  |  |   | 4,197                                   |   |  |   | 39,051     | 
|Interest expense                                                        |  |                                         | 18,670     |  |                                                 |   | 11,893     |                                                  |  |   | 4,599                                   |   |  |   | 17,895     | 
|                                                                        |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Income (loss) before provision for income taxes                         |  |                                         | 40,744     |  |                                                 |   | 6,628      |                                                  |  |   | (402                                    | ) |  |   | 21,156     | 
|Provision for income taxes                                              |  |                                         | 16,669     |  |                                                 |   | 2,322      |                                                  |  |   | 1,499                                   |   |  |   | 10,860     | 
|                                                                        |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Net income (loss) and total comprehensive income (loss)                 |  | $                                       | 24,075     |  |                                                 | $ | 4,306      |                                                  |  | $ | (1,901                                  | ) |  | $ | 10,296     | 
|                                                                        |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Net income (loss) per common share attributable to common shareholders: |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Basic and diluted                                                       |  | $                                       | 0.55       |  |                                                 | $ | 0.10       |                                                  |  | $ | (0.04                                   | ) |  | $ | 0.24       | 
|Weighted average number of common shares outstanding:                   |  |                                         |            |  |                                                 |   |            |                                                  |  |   |                                         |   |  |   |            | 
|Basic and diluted                                                       |  |                                         | 43,747,944 |  |                                                 |   | 43,747,944 |                                                  |  |   | 43,747,944                              |   |  |   | 43,747,944 | 

The accompanying notes are an integral part of these consolidated financial statements.



F-5



---

##### Table of Contents

J.Jill, Inc.

CONSOLIDATED STATEMENTS OF MEMBERS EQUITY

(PREDECESSOR)

(in
thousands, except unit data)



|                                                                  |  |                  |         |   |               |        |      |               |       |   |              |        |  |                    |            |   |                      |        |         |                              |  |  |            |   |  |   |   |  |  |   |        |   |  |   |         |   |  |   |         |  
|----------------------------------------------------------------- |  | ---------------- | ------- | - | ------------- | ------ | ---- | ------------- | ----- | - | ------------ | ------ |  | ------------------ | ---------- | - | -------------------- | ------ | ------- | ---------------------------- |  |  | ---------- | - |  | - | - |  |  | - | ------ | - |  | - | ------- | - |  | - | ------- | -
|                                                                  |  | PreferredCapital |         |   | Class A Units |        |      | Class B Units |       |   | Common Units |        |  | ContributedCapital |            |   | Accumulated(Deficit) |        |         | TotalMembersEquity(Deficit) | 
|                                                                  |  |                  | Units   |   |               | Amount |      |               | Units |   |              | Amount |  |                    | Units      |   |                      | Amount |         |                              |  | 
|Balance, February 1, 2014                                         |  | $                | 72,824  |   |               |        | 100  |               |       | $ | 1            |        |  |                    | 3,927,601  |   |                      | $      | 39,276  |                              |  |  | 1,000,000  |   |  | $ |  |  |  | $ | 2,140  |   |  | $ | (58,182 | ) |  | $ | (16,765 | )
|Equity-based compensation                                         |  |                  |        |   |               |        |     |               |       |   |             |        |  |                    |           |   |                      |        |        |                              |  |  |           |   |  |   |  |  |  |   | 5,152  |   |  |   |        |   |  |   | 5,152   |  
|Net income                                                        |  |                  |        |   |               |        |     |               |       |   |             |        |  |                    |           |   |                      |        |        |                              |  |  |           |   |  |   |  |  |  |   |       |   |  |   | 10,296  |   |  |   | 10,296  |  
|                                                                  |  |                  |         |   |               |        |      |               |       |   |              |        |  |                    |            |   |                      |        |         |                              |  |  |            |   |  |   |   |  |  |   |        |   |  |   |         |   |  |   |         |  
|Balance, January 31, 2015                                         |  | $                | 72,824  |   |               |        | 100  |               |       | $ | 1            |        |  |                    | 3,927,601  |   |                      | $      | 39,276  |                              |  |  | 1,000,000  |   |  | $ |  |  |  | $ | 7,292  |   |  | $ | (47,886 | ) |  | $ | (1,317  | )
|Equity-based compensation                                         |  |                  |        |   |               |        |     |               |       |   |             |        |  |                    |           |   |                      |        |        |                              |  |  |           |   |  |   |  |  |  |   | 441    |   |  |   |        |   |  |   | 441     |  
|Net loss                                                          |  |                  |        |   |               |        |     |               |       |   |             |        |  |                    |           |   |                      |        |        |                              |  |  |           |   |  |   |  |  |  |   |       |   |  |   | (1,901  | ) |  |   | (1,901  | )
|                                                                  |  |                  |         |   |               |        |      |               |       |   |              |        |  |                    |            |   |                      |        |         |                              |  |  |            |   |  |   |   |  |  |   |        |   |  |   |         |   |  |   |         |  
|Balance, May 7, 2015                                              |  |                  | 72,824  |   |               |        | 100  |               |       |   | 1            |        |  |                    | 3,927,601  |   |                      |        | 39,276  |                              |  |  | 1,000,000  |   |  |   |  |  |  |   | 7,733  |   |  |   | (49,787 | ) |  |   | (2,777  | )
|Elimination of equity in connection with Acquisition (see Note 4) |  |                  | (72,824 | ) |               |        | (100 | )             |       |   | (1           | )      |  |                    | (3,927,601 | ) |                      |        | (39,276 | )                            |  |  | (1,000,000 | ) |  |   |  |  |  |   | (7,733 | ) |  |   | 49,787  |   |  |   | 2,777   |  
|                                                                  |  |                  |         |   |               |        |      |               |       |   |              |        |  |                    |            |   |                      |        |         |                              |  |  |            |   |  |   |   |  |  |   |        |   |  |   |         |   |  |   |         |  
|Balance, May 8, 2015                                              |  | $                |        |   |               |        |     |               |       | $ |             |        |  |                    |           |   |                      | $      |        |                              |  |  |           |   |  | $ |  |  |  | $ |       |   |  | $ |        |   |  | $ |        |  
|                                                                  |  |                  |         |   |               |        |      |               |       |   |              |        |  |                    |            |   |                      |        |         |                              |  |  |            |   |  |   |   |  |  |   |        |   |  |   |         |   |  |   |         |  

J.Jill, Inc.

CONSOLIDATED STATEMENTS OF MEMBERS EQUITY

(SUCCESSOR)

(in
thousands, except unit data)



|                           |  |              |           |  |                    |   |   |                     |  |   |                     |   |  |   |         |   |  |   |         |  
|-------------------------- |  | ------------ | --------- |  | ------------------ | - | - | ------------------- |  | - | ------------------- | - |  | - | ------- | - |  | - | ------- | -
|                           |  | Common Units |           |  | ContributedCapital |   |   | AccumulatedEarnings |  |   | TotalMembersEquity |  
|                           |  | Units        |           |  | Amount             |   |   |                     | 
|Balance, May 8, 2015       |  |              | 1,000,000 |  |                    | $ |  |                     |  | $ | 170,657             |   |  | $ |        |   |  | $ | 170,657 |  
|Distribution to member     |  |              |          |  |                    |   |  |                     |  |   | (8,560              | ) |  |   |        |   |  |   | (8,560  | )
|Equity-based compensation  |  |              |          |  |                    |   |  |                     |  |   | 168                 |   |  |   |        |   |  |   | 168     |  
|Net income                 |  |              |          |  |                    |   |  |                     |  |   |                    |   |  |   | 4,306   |   |  |   | 4,306   |  
|                           |  |              |           |  |                    |   |   |                     |  |   |                     |   |  |   |         |   |  |   |         |  
|Balance, January 30, 2016  |  |              | 1,000,000 |  |                    |   |  |                     |  |   | 162,265             |   |  |   | 4,306   |   |  |   | 166,571 |  
|Distribution to member     |  |              |          |  |                    |   |  |                     |  |   | (54,706             | ) |  |   | (15,294 | ) |  |   | (70,000 | )
|Repurchase of Common Units |  |              |          |  |                    |   |  |                     |  |   | (305                | ) |  |   |        |   |  |   | (305    | )
|Equity-based compensation  |  |              |          |  |                    |   |  |                     |  |   | 624                 |   |  |   |        |   |  |   | 624     |  
|Net income                 |  |              |          |  |                    |   |  |                     |  |   |                    |   |  |   | 24,075  |   |  |   | 24,075  |  
|                           |  |              |           |  |                    |   |   |                     |  |   |                     |   |  |   |         |   |  |   |         |  
|Balance, January 28, 2017  |  |              | 1,000,000 |  |                    | $ |  |                     |  | $ | 107,878             |   |  | $ | 13,087  |   |  | $ | 120,965 |  
|                           |  |              |           |  |                    |   |   |                     |  |   |                     |   |  |   |         |   |  |   |         |  

The accompanying notes are an integral part of these consolidated financial statements.



F-6



---

##### Table of Contents

J.Jill, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)



|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|---------------------------------------------------------------------------------------------- |  | -------------------------------------- | ------- | - | ---------------------------------------------- | - | -------- | ----------------------------------------------- |  | - | -------------------------------------- | - |  | - | ------- | -
|                                                                                               |  | Successor                              |         |   | Predecessor                                    |  
|                                                                                               |  | For theFiscal YearEndedJanuary 28,2017 |         |   | For thePeriod fromMay 8, 2015toJanuary 30,2016 |   |          | For thePeriod fromFebruary 1,2015 toMay 7, 2015 |  |   | For theFiscal YearEndedJanuary 31,2015 |  
|Net income (loss)                                                                              |  | $                                      | 24,075  |   |                                                | $ | 4,306    |                                                 |  | $ | (1,901                                 | ) |  | $ | 10,296  |  
|Operating activities:                                                                          |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Adjustments to reconcile net income (loss) to net cash provided by operating activities        |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Depreciation and amortization                                                                  |  |                                        | 36,219  |   |                                                |   | 28,702   |                                                 |  |   | 5,147                                  |   |  |   | 19,051  |  
|Amortization of inventory fair value adjustment                                                |  |                                        |        |   |                                                |   | 10,471   |                                                 |  |   |                                       |   |  |   |        |  
|Loss on disposal of fixed assets                                                               |  |                                        | 385     |   |                                                |   | 237      |                                                 |  |   | 112                                    |   |  |   | 58      |  
|Noncash amortization of deferred financing and debt discount costs                             |  |                                        | 1,861   |   |                                                |   | 983      |                                                 |  |   | 657                                    |   |  |   | 1,680   |  
|Payment-in-kind interest on debt                                                               |  |                                        |        |   |                                                |   |         |                                                 |  |   | 1,192                                  |   |  |   | 4,476   |  
|Equity-based compensation                                                                      |  |                                        | 624     |   |                                                |   | 168      |                                                 |  |   | 441                                    |   |  |   | 5,152   |  
|Deferred rent liability                                                                        |  |                                        | 1,785   |   |                                                |   | 3,071    |                                                 |  |   | 84                                     |   |  |   | 309     |  
|Deferred income taxes                                                                          |  |                                        | (4,541  | ) |                                                |   | (7,261   | )                                               |  |   | (961                                   | ) |  |   | (1,903  | )
|Changes in operating assets and liabilities, net of Acquisition                                |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Accounts receivable                                                                            |  |                                        | (687    | ) |                                                |   | 4,017    |                                                 |  |   | (3,504                                 | ) |  |   | (2,058  | )
|Inventories                                                                                    |  |                                        | (2,235  | ) |                                                |   | (1,577   | )                                               |  |   | (6,955                                 | ) |  |   | (10,273 | )
|Prepaid expenses and other current assets                                                      |  |                                        | 1,980   |   |                                                |   | (7,112   | )                                               |  |   | (1,716                                 | ) |  |   | 349     |  
|Accounts payable                                                                               |  |                                        | (2,630  | ) |                                                |   | 3,931    |                                                 |  |   | (7,608                                 | ) |  |   | 3,066   |  
|Accrued taxes payable                                                                          |  |                                        | 999     |   |                                                |   | (1,966   | )                                               |  |   | 1,542                                  |   |  |   |        |  
|Accrued expenses                                                                               |  |                                        | 2,319   |   |                                                |   | 8,356    |                                                 |  |   | 17,285                                 |   |  |   | 6,531   |  
|Other noncurrent assets                                                                        |  |                                        | (13     | ) |                                                |   | (1,113   | )                                               |  |   | 12                                     |   |  |   | (12     | )
|Other noncurrent liabilities                                                                   |  |                                        | 7,059   |   |                                                |   | 5,349    |                                                 |  |   | 1,906                                  |   |  |   | 4,652   |  
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Net cash provided by operating activities                                                      |  |                                        | 67,200  |   |                                                |   | 50,562   |                                                 |  |   | 5,733                                  |   |  |   | 41,374  |  
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Investing activities:                                                                          |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Acquisition, net of cash acquired                                                              |  |                                        |        |   |                                                |   | (385,744 | )                                               |  |   |                                       |   |  |   |        |  
|Purchases of property and equipment                                                            |  |                                        | (37,077 | ) |                                                |   | (26,559  | )                                               |  |   | (7,406                                 | ) |  |   | (24,143 | )
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Net cash used in investing activities                                                          |  |                                        | (37,077 | ) |                                                |   | (412,303 | )                                               |  |   | (7,406                                 | ) |  |   | (24,143 | )
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Financing activities:                                                                          |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Repurchase of Common Units                                                                     |  |                                        | (305    | ) |                                                |   |         |                                                 |  |   |                                       |   |  |   |        |  
|Repayments on long-term debt                                                                   |  |                                        | (12,775 | ) |                                                |   | (1,250   | )                                               |  |   | (5,646                                 | ) |  |   | (17,145 | )
|Proceeds from long-term debt                                                                   |  |                                        | 40,000  |   |                                                |   | 250,000  |                                                 |  |   |                                       |   |  |   |        |  
|Payment of debt issuance costs                                                                 |  |                                        | (1,668  | ) |                                                |   | (9,640   | )                                               |  |   |                                       |   |  |   |        |  
|Proceeds from equity investment                                                                |  |                                        |        |   |                                                |   | 160,546  |                                                 |  |   |                                       |   |  |   |        |  
|Receivable from related party                                                                  |  |                                        | 588     |   |                                                |   | (1,850   | )                                               |  |   |                                       |   |  |   |        |  
|Distribution to member                                                                         |  |                                        | (70,000 | ) |                                                |   | (8,560   | )                                               |  |   |                                       |   |  |   |        |  
|Proceeds from revolving credit facility                                                        |  |                                        |        |   |                                                |   |         |                                                 |  |   | 58,750                                 |   |  |   | 87,750  |  
|Repayments of revolving credit facility                                                        |  |                                        |        |   |                                                |   |         |                                                 |  |   | (51,500                                | ) |  |   | (87,750 | )
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Net cash (used in) provided by financing activities                                            |  |                                        | (44,160 | ) |                                                |   | 389,246  |                                                 |  |   | 1,604                                  |   |  |   | (17,145 | )
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Net change in cash                                                                             |  |                                        | (14,037 | ) |                                                |   | 27,505   |                                                 |  |   | (69                                    | ) |  |   | 86      |  
|Cash:                                                                                          |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Beginning of Period                                                                            |  |                                        | 27,505  |   |                                                |   |         |                                                 |  |   | 604                                    |   |  |   | 518     |  
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|End of Period                                                                                  |  | $                                      | 13,468  |   |                                                | $ | 27,505   |                                                 |  | $ | 535                                    |   |  | $ | 604     |  
|                                                                                               |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Supplemental cash flow information:                                                            |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Cash paid for interest                                                                         |  |                                        | 16,406  |   |                                                | $ | 11,192   |                                                 |  | $ | 2,952                                  |   |  | $ | 12,531  |  
|Cash paid for taxes                                                                            |  |                                        | 15,497  |   |                                                |   | 16,033   |                                                 |  |   | 882                                    |   |  |   | 12,599  |  
|Noncash investing and financing activities:                                                    |  |                                        |         |   |                                                |   |          |                                                 |  |   |                                        |   |  |   |         |  
|Noncash purchase consideration                                                                 |  |                                        |        |   |                                                |   | 10,111   |                                                 |  |   |                                       |   |  |   |        |  
|Capital expenditures financed with the ending balance in accounts payable and accrued
expenses |  |                                        | 740     |   |                                                |   | 1,274    |                                                 |  |   | 2,547                                  |   |  |   | 3,605   |  

The accompanying notes are an integral part of these consolidated financial statements.



F-7



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements

1. General

J.Jill, Inc.,
J.Jill or the Company, is a nationally recognized womens apparel brand, headquartered in Quincy, Massachusetts, focused on affluent customers in the 40-65 age segment in 43 states. J.Jill operates an integrated
omni-channel platform that is well diversified across its retail stores, website and catalogs.

J.Jill, Inc. was formed on
February 24, 2017, when the Company converted from a Delaware limited liability company named Jill Intermediate LLC (Intermediate) into a Delaware corporation named J.Jill, Inc. In conjunction with the conversion, all of
Intermediates outstanding equity interests converted into 43,747,944 shares of common stock. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and notes thereto have been adjusted
retroactively, where applicable, to reflect this conversion.

Intermediate had one class of equity interests, all of which were held by
JJill Holdings, Inc. (Holdings), its former direct parent company, and JJill Topco Holdings, LP (Topco), the direct parent company of Holdings. In conjunction with the Companys conversion into a Delaware corporation,
JJill Holdings and JJill Topco Holdings each received shares of common stock in proportion to the percentage of Intermediates equity interests held by them prior to the conversion. Following the Companys conversion into a Delaware
corporation and subsequent to the financial statement date, Holdings, the Companys former direct parent, merged with and into J.Jill, Inc., and J.Jill, Inc. was the surviving entity to such merger.

In connection with the conversion, J.Jill, Inc. will continue to hold all assets of Intermediate and will assume all of its liabilities and
obligations. J.Jill, Inc. is a holding company, and Jill Acquisition LLC, its wholly-owned subsidiary, will remain the operating company for the business assets.

Intermediate was a Delaware Limited Liability Company that was formed on February 17, 2011 and held the ownership interests of Jill
Acquisition LLC and its subsidiaries. On May 8, 2015, a 94% controlling interest in the Company was acquired (the Acquisition) by Holdings and the remaining 6% was acquired by Topco, a Delaware limited partnership formed by
TowerBrook Capital Partners L.P. (TowerBrook). The purchase price was $396.4 million, which consisted of $386.3 million of cash consideration and $10.1 million of noncash consideration in the form of an equity rollover by management.
Holdings, a Delaware corporation, was formed for the purpose of effecting the Acquisition and had no operations of its own, except for costs incurred related to the Acquisition. Holdings was a wholly-owned subsidiary of Topco. Holdings accounted for
the Acquisition as a business combination under the acquisition method of accounting. Accordingly, the assets acquired and liabilities assumed were recorded at fair value with the remaining purchase price recorded as goodwill (see Note 4). The
Company elected to pushdown the effects of the Acquisition to its consolidated financial statements.

2. Summary of Significant Accounting Policies

Basis of Presentation

The
consolidated financial statements for the periods beginning and subsequent to May 8, 2015 represent the financial information of the Company and its subsidiaries subsequent to the Acquisition and are labeled as Successor
(Successor). The consolidated financial statements prior to and including May 7, 2015 represent the financial information of the Company and its subsidiaries prior to the Acquisition, as well as consolidated variable interest
entities (VIEs) (see Note 10), and are labeled as Predecessor (Predecessor). Due to the change in the basis of accounting resulting from the Acquisition, the Companys consolidated financial statements for these
reporting periods are not comparable.

The consolidated financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP).



F-8



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The Company uses a 52 to 53 week fiscal year ending on the Saturday closest to
January 31. Each fiscal year generally is comprised of four 13 week fiscal quarters, although in the years with 53 weeks the fourth quarter represents a 14 week period. The Successor fiscal year of 2016 had 52 weeks of operations. The period
from May 8, 2015 to January 30, 2016 (Successor period) included approximately 38 weeks of operations. The period from February 1, 2015 to May 7, 2015 (Predecessor period) included approximately 14 weeks of operations. The
Predecessor fiscal year of 2014 had 52 weeks of operations.

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and judgments that
affect reported amounts of assets, liabilities, members equity, net sales and expenses, and the disclosure of contingent assets and liabilities. Significant estimates relied upon in preparing these consolidated financial statements include,
but are not limited to, revenue recognition, including merchandise returns and accounting for gift card breakage; accounting for business combinations; estimating the fair value of inventory and inventory reserves; impairment assessments of
goodwill, intangible assets, and other long-lived assets; and equity-based compensation. Actual results could differ from those estimates.

Principles of Consolidation

The
accompanying consolidated financial statements include the assets, liabilities and results of operations of the Company and its subsidiaries. For periods prior to the Acquisition, the consolidated financial statements include the assets,
liabilities and results of operations of the Predecessor and its subsidiaries, as well as consolidated VIEs, for which the Predecessor had determined that it was the primary beneficiary (see Note 10). All intercompany balances and transactions have
been eliminated in the consolidated financial statements.

Segment Reporting

The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Companys
operating segments consist of its retail and direct channels, which have been aggregated into one reportable segment.

All of the
Companys identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside the United States, nor does any customer represent more than 10% of total revenues for any period
presented.

Variable Interest Entities

The Company regularly evaluates its relationships with other entities to identify whether they are variable interest entities and to assess
whether it is the primary beneficiary of such entities. Under GAAP, a reporting entity shall consolidate a VIE when that reporting entity has a variable interest that provides the reporting entity with a controlling financial interest. The entity
that ultimately consolidates the VIE shall be the reporting entity that a) has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance, and b) has the obligation to absorb losses or the right
to receive benefits from the VIE that could be significant to the VIE. If the determination is made that a company is the primary beneficiary of a variable interest entity, then that entity is included in its consolidated financial statements.

As of January 31, 2015 (Predecessor), the Company determined that it had a variable interest in three unrelated entities for which it
determined it was the primary beneficiary (see Note 10). These VIEs were consolidated during the 2015 Predecessor period and fiscal year 2014 and all intercompany transactions were eliminated in consolidation.



F-9



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Concurrent with the May 8, 2015 Acquisition (see Note 4), the obligations held by each
of the three VIEs were repaid in full and no further obligations remained. Accordingly, these entities were not consolidated in the 2015 Successor period and they were dissolved.

Business Combinations

The Company
accounts for business combinations under the acquisition method of accounting. Under this method, acquired assets, including separately identifiable intangible assets, and any assumed liabilities are recorded at their acquisition date estimated
fair value. The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount resulting from the acquisition. Determining the fair value of assets acquired and liabilities
assumed involves the use of significant estimates and assumptions.

Concurrent with the Acquisition, the Company elected to apply pushdown
accounting. Pushdown accounting refers to the use of the acquirers basis in the preparation of the acquirees separate financial statements as the new basis of accounting for the acquiree. See Note 4 for a discussion of the Acquisition
and the related impact of pushdown accounting on the Companys consolidated financial statements.

Accounts Receivable

The Companys accounts receivable relate primarily to payments due from banks for credit and debit transactions for approximately 2 to 5
days of sales. These receivables do not bear interest.

Inventories

Inventory consists of finished goods held for sale. Inventory is stated at the lower of cost or market, net of reserves. Cost is
calculated using the weighted average method of accounting, and includes the cost to purchase merchandise from the Companys manufacturers plus duties and inbound freight. The net realizable value of the Companys inventory is estimated
based on historical experience, current and forecasted demand, and market conditions. The allowance for excess and obsolete inventory requires management to make assumptions and to apply judgment regarding a number of factors, including past and
projected sales performance and current inventory levels. As of January 28, 2017 (Successor) and January 30, 2016 (Successor), an inventory reserve of $2.0 million and $1.5 million has been recorded, respectively. The Company sells excess
inventory in its stores and on-line at www.jjill.com. In limited cases, discount marketers and inventory liquidators are utilized.

Inventory from domestic suppliers is recorded when it is received at the distribution center. Inventory from foreign suppliers is
recorded when goods are cleared for export on board the ship at the port of shipment.

Property and Equipment

Property and equipment purchases are recorded at cost. Property and equipment is presented net of accumulated depreciation. Depreciation
is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements.
Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements that significantly enhance the value and increase the estimated useful life of the asset are capitalized and depreciated
over the new estimated useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, and any resulting gains or losses are included in the accompanying consolidated
statements of operations and comprehensive income (loss).



F-10



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Estimated useful lives of property and equipment asset categories are as follows:



|                                  |  |                                               
|--------------------------------- |  | ----------------------------------------------
|Furniture, fixtures and equipment |  | 5-7 years                                     
|Computer software and hardware    |  | 3-5 years                                     
|Leasehold improvements            |  | Shorter of estimated useful life or lease term

Capitalized Interest

The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest
rate. These costs are included in property and equipment and amortized over the useful life of the related property or equipment.

Long-lived
Assets

The carrying value of long-lived assets, including amortizable identifiable intangible assets, and asset groups are
evaluated whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a
significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating or cash flow performance that demonstrates continuing losses associated with an asset or asset
group. A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The
estimate of cash flows includes managements assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is
recorded equal to the excess of the asset or asset groups carrying value over its fair value. Fair value is measured based on a projected discounted cash flow model using a discount rate the Company believes is commensurate with the risk
inherent in its business. Any impairment charge would be recognized within operating expenses as a selling, general and administrative expense.

Goodwill and Indefinite-lived Intangible Assets

Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed for impairment at least annually, or more frequently when
events or changes in circumstances indicate that the carrying value may not be recoverable. Judgments regarding indicators of potential impairment are based on market conditions and operational performance of the business.

At each fiscal year-end, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment
initially using a qualitative approach (step zero) to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If management concludes,
based on its assessment of relevant events, facts and circumstances that it is more likely than not that a reporting units carrying value is greater than its fair value, then a quantitative analysis will be performed to determine if there is
any impairment. The Company may also elect to initially perform a quantitative analysis instead of starting with step zero. The quantitative assessment for goodwill is a two-step assessment. Step one requires comparing the carrying value
of a reporting unit, including goodwill, to its fair value using the income approach. The income approach uses a discounted cash flow model, which involves significant estimates and assumptions, including preparation of revenue and profitability
growth forecasts, selection of a discount rate, and selection of a terminal year multiple. If the fair value of the respective reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and no further testing is
required. If the carrying amount of a reporting unit exceeds its fair value, the second step of



F-11



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



the goodwill impairment test is to measure the amount of impairment loss, if any. Step two compares the implied fair value of goodwill to the carrying amount of
goodwill. The implied fair value of goodwill is determined by a hypothetical purchase price allocation using the reporting units fair value as the purchase price. If the carrying amount of goodwill exceeds the implied fair value, an
impairment charge is recorded to write down goodwill to its implied fair value and is recorded as a selling, general and administrative expense within the Companys consolidated statement of operations and comprehensive income (loss).

At each year end, the Company also performs an impairment analysis of its indefinite-lived intangible assets. Impairment losses are recorded
to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company measures the fair value of its trade name using the income approach, which uses a discounted cash flow model. The most significant
estimates and assumptions inherent in this approach are the preparation of revenue and profitability growth forecasts, selection of a discount rate and a terminal year multiple.

Revenue Recognition

Revenue is
primarily derived from the sale of apparel and accessory merchandise through our retail channel and direct channel, which includes website and catalog phone orders and is recognized when all of the following criteria are satisfied:
(i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) delivery of products has occurred. Revenue also includes shipping and handling
fees collected from customers. Revenue from our retail channel is recognized at the time of sale and revenue from our direct channel is recognized upon receipt of merchandise by the customer.

The Company has a return policy where merchandise returns will be accepted within 90 days of the original purchase date. At the sole
discretion of the Company, returns may also be accepted after 90 days as a customer accommodation. At the time of sale, the Company records an estimated sales reserve for merchandise returns based on historical prior returns experience and
expected future returns. The Company collects and remits sales and use taxes in all states in which retail and direct sales occur and taxes are applicable. These taxes are reported on a net basis and are thereby excluded from revenue.

Shipping and handling costs of $12.6 million, $7.9 million, $2.3 million and $9.0 million were recorded in selling, general and administrative
expenses, for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively. Customer payments made in advance of the customer receiving merchandise are recorded as deferred revenue within accrued expenses and other liabilities in
the Companys consolidated balance sheets.

The Company sells gift cards without expiration dates to customers. The Company does
not charge administrative fees on unused gift cards. Proceeds from the sale of gift cards are recorded as deferred revenue until the customer redeems the gift card or when the likelihood of redemption is remote. Based upon historical
experience, the Company estimates the value of outstanding gift cards that will ultimately not be redeemed (gift card breakage) and will not be escheated under statutory unclaimed property laws. This gift card breakage amount is
recognized as revenue over the time period established by the Companys historical gift card redemption pattern.

The Company
recognized gift card breakage revenue of $0.7 million, $0.4 million, $0.3 million and $0.5 million during the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively.

The Company also receives royalty payments through its private label credit card agreement. The royalty payments are recognized as
revenue as they are received over the term of the agreement. Royalty payments recognized were $2.9 million, $1.3 million, $0.5 million and $1.5 million for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively.



F-12



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Costs of Goods Sold

The Companys costs of goods sold includes the direct costs of sold merchandise, which include customs, taxes, duties, and inbound
shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. Costs of goods sold does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation,
amortization, or labor and benefits.

Advertising Costs

The Company incurs costs to produce, print, and distribute its catalogs. Catalog costs are considered direct response advertising, are
capitalized as incurred, and are amortized over the expected sales life of each catalog for a period generally not exceeding six months. The expected sales life of each catalog is determined based on a detailed marketing forecast, which
considers historical experience for similar catalogs, coupled with current sales trends. Amortized catalog advertising expenses were approximately $34.2 million, $21.6 million, $7.8 million and $25.5 million the 2016, 2015 Successor, 2015
Predecessor and 2014 periods, respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss).

Other advertising costs are recorded as incurred. Other advertising expenses recorded were $18.4 million, $10.9 million, $3.2 million and
$10.9 million for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss).

Operating Leases and Deferred Rent

Certain operating leases contain predetermined escalations of the minimum rental payments to be made over the lease term. The Company
recognizes the related rent expense on a straight-line basis over the life of the lease, taking into account fixed escalations as well as reasonably assured renewal periods.

Certain retail store leases include allowances from landlords in the form of cash. These allowances are part of the negotiated terms of
the lease. The Company records the full amount of the allowance when specific performance criteria are met as a deferred liability. The deferred liability is amortized into income as a reduction of rent expense over the term of the applicable
lease, including reasonably assured renewal periods. The Company recognizes those liabilities to be amortized within a year as a current liability and those greater than a year as a long-term liability. For purposes of recognizing these
allowances and minimum rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the leased space to begin amortization, which is generally when the Company takes possession of the space and
begins to make improvements in preparation for its intended use.

Certain retail store leases also provide for contingent rent in addition
to fixed rent. The contingent rent is determined as a percentage of gross sales in excess of predefined levels. The Company records a rent liability in accrued liabilities and the corresponding rent expense when it becomes probable that the Company
will achieve a specified gross sales amount.

Certain store operating leases contain cancellation clauses allowing the leases to be
terminated at the Companys discretion, provided certain minimum sales levels are not achieved within a defined period of time after opening. The Company has not historically exercised these cancellation clauses and has therefore disclosed
commitments for the full terms of such leases in the accompanying disclosures.



F-13



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Debt Issuance Costs

The Company defers costs directly associated with acquiring third-party financing. Debt issuance costs are deferred and amortized using the
effective interest rate method over the term of the related long-term debt agreement and the straight-line method for the revolving credit agreement. Debt issuance costs related to long-term debt are reflected as a direct deduction from the carrying
amount of the debt in accordance with the Companys adoption of ASU 2015-03 (see Note 3).

Income Taxes

The Company accounts for income taxes using the asset and liability method and elected to be taxed as a C corporation. Under this method,
deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases, using enacted tax rates expected to be applicable in
the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a
valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling
of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies.

The Company
records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon
examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is
recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a
greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the
recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax expense and liability in the period in which such changes occur.

Any interest or penalties incurred related to unrecognized tax benefits are recorded as tax expense in the provision for income tax expense
line item of the accompanying consolidated statements of operations and comprehensive income (loss). The Company has not incurred interest expense or penalties related to income taxes during any period presented in the consolidated financial
statements.

Fair Value of Financial Instruments

Certain assets and liabilities are carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be
received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value requires the Company to maximize the use of observable inputs and minimize the use of
unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements). Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is
considered unobservable:



F-14



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



| | Level 1: | Quoted prices in active markets for identical assets or liabilities.
| | -------- | --------------------------------------------------------------------



| | Level 2: | Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs
other than quoted prices that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, including interest rates and yield curves, and market corroborated inputs.
| | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Level 3: | Unobservable inputs for the asset or liability that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These are valued based on managements
estimates and assumptions that market participants would use in pricing the asset or liability.
| | -------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

As of January 28, 2017
(Successor) the Company had no assets or liabilities that were measured at fair value for reporting purposes on a recurring basis. The fair value of the Companys debt was approximately $279.7 million and $250.4 million at January 28,
2017 (Successor) and January 30, 2016 (Successor), respectively.

The Company believes that the carrying amounts of its other
financial instruments, including cash, accounts receivable, accounts payable and any amounts drawn on its revolving credit facilities, consisting primarily of instruments without extended maturities, the fair value of which, based on
managements estimates, approximates their carrying value due to the short-term maturities of these instruments.

Comprehensive Income (Loss)

Comprehensive income (loss) is a measure of net income (loss) and all other changes in equity that result from transactions other
than with equity holders, and would normally be recorded in the consolidated statements of members equity and the consolidated statements of comprehensive income (loss). The Companys management has determined that net income (loss) is
the only component of the Companys comprehensive income (loss). Accordingly, there is no difference between net income (loss) and comprehensive income (loss).

Equity-based Compensation

Successor

The Company
accounts for equity-based compensation for employees and directors by recognizing the fair value of equity-based compensation as an expense in the calculation of net income (loss), based on the grant-date fair value. The Company recognizes
equity-based compensation expense in the periods in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. The fair value of the equity-based awards is
determined using the Black-Scholes option pricing model.

All of the equity-based awards granted by the Company during fiscal year 2016
and the 2015 Successor period were considered equity-classified awards and compensation expense for these awards was recognized based on the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has
considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment is recognized in full in the period of adjustment, and if the actual forfeiture rate is materially
different from the Companys estimate, the Company may be required to record adjustments to equity-based compensation expense in future periods.

The Company recognizes equity-based compensation generated at Topco and records the related expense in its consolidated financial statements
as the costs are deemed to be for the benefit of the Company (see Note 16). The expenses were allocated from the parent level to the Company and recognized as an equity contribution.



F-15



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Predecessor

The Predecessor accounted for liability-classified equity-based compensation for employees and a director of the Company by recognizing the
value of equity-based compensation as an expense in the calculation of net income (loss), based on the intrinsic value of the award, in accordance with ASC 718. The awards were revalued at each reporting period and the Predecessor recognized
the related equity-based compensation expense.

The Predecessor recognized equity-based compensation generated at JJIP LLC
(JJIP) (see Note 16) and recognized the related expense in the Predecessors consolidated financial statements. These equity-based compensation costs were incurred by JJIP and deemed to be for the benefit of J.Jill, and were
therefore recognized as an equity contribution by the Company.

Earnings Per Share

Basic net income (loss) per common share attributable to common shareholders is calculated by dividing net income (loss) attributable to common
shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders
by the diluted weighted average number of common shares outstanding for the period. There were no potentially dilutive securities outstanding during fiscal year 2016, the 2015 Successor, or 2015 Predecessor periods, or fiscal year 2014.

Credit Card Agreement

The Company
has an arrangement with a third party to provide a private label credit card to its customers through February 2018 with two, two-year extension periods. The Company does not bear the credit risk associated with the private label credit card at
any point prior to the termination of the agreement, at which point the Company is obligated to purchase the receivables. If the arrangement is terminated prior to September 7, 2021 and other criteria are met, the Company is obligated to pay a
purchase price premium. The potential impact of the purchase obligation cannot be reasonably estimated as of the issuance date.

The
Company also receives reimbursements for costs of marketing programs related to the credit card, which are recorded as a reduction in operating expenses in the accompanying consolidated statements of operations and comprehensive income
(loss). Reimbursements amounted to $1.6 million, $0.6 million, $0.2 million, and $0.5 million for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively.

The Company also receives royalty payments from the credit card agreement, as discussed in Revenue Recognition, above.

Employee Benefit Plan

The Company
has a 401(k) retirement plan under third-party administration covering all eligible employees who meet certain age and employment requirements pursuant to Section 401(k) of the Internal Revenue Code. Subject to certain dollar limits, eligible
employees may contribute a portion of their pretax annual compensation to the plan, on a tax-deferred basis. The plan operates on a calendar year basis. The Company may, at its discretion, make elective contributions of up to 50% of the first 3% of
the gross salary of the employee, which vests over a five year period. Discretionary contributions made by the Company for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, were $0.6 million, $0.4 million, $0.2 million and $0.6 million,
respectively.



F-16



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Concentration of Credit Risks

Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash held in financial
institutions and accounts receivable. The Company considers the credit risk associated with these financial instruments to be minimal. Cash is held by financial institutions with high credit ratings and the Company has not historically
sustained any credit losses associated with its cash balances. The Company evaluates the credit risk associated with accounts receivable to determine if an allowance for doubtful accounts is necessary. As of January 28, 2017
(Successor) and January 30, 2016 (Successor), the Company determined that no allowance for doubtful accounts was necessary.

3. Accounting
Standards

Recently Adopted Accounting Standards

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for MeasurementPeriod Adjustments. The amendments in
this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. To simplify the accounting for adjustments
made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. For public business entities, the amendments in this update are effective for
fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The adoption of ASU 2015-16 did not have a material impact on the consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. Update 2015-02 amended the process that a
reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this update are effective for public business entities for fiscal years, and for interim periods within those fiscal years,
beginning after December 15, 2015. The adoption of ASU 2015-02 did not have a material impact on the consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01, Income StatementExtraordinary and Unusual Items. The amendments in this update
eliminate the concept of extraordinary items in Subtopic 225-20, which required entities to consider whether an underlying event or transaction is extraordinary. However, the amendments retain the presentation and disclosure guidance for items that
are unusual in nature or occur infrequently. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of ASU 2015-01 did not have a material
impact on the consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an
Entitys Ability to Continue as a Going Concern. This amendment states that in connection with preparing financial statements for each annual and interim reporting period, an entitys management should evaluate whether there are
conditions or events that raise substantial doubt about the entitys ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements
are available to be issued, when applicable). The amendments in this update are effective for the annual reporting period ending after December 15, 2016, and for annual periods and interim periods thereafter. The standard did not have a
material impact on the Companys consolidated financial statements or footnote disclosures as of the January 28, 2017 adoption date, but may require additional disclosures in future periods.

Recently Issued Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-04,IntangiblesGoodwill and Other (Topic 350): Simplifying the Accounting for
Goodwill Impairment. ASU 2017-04 removes Step 2 of the goodwill impairment test, which



F-17



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting units carrying value exceeds its fair value, not to exceed the carrying
amount of goodwill. This standard, which will be effective for the Company beginning in the first quarter of fiscal year 2021, is required to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests
performed on testing dates after January 1, 2017. The Company is currently evaluating the impact that adopting ASU 2017-04 will have on its consolidated financial statements but does not expect it to have a material impact.

In October 2016 the FASB issued ASU 2016-16, Income Taxes (Topic 740): IntraEntity Transfers of Assets Other Than Inventory. This
update is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, an entity would recognize the current and deferred income tax consequences of an
intra-entity asset transfer when the transfer occurs. Intra-entity inventory transfers would still be an exception. The provisions of ASU 2016-16 are effective for reporting periods beginning after December 15, 2017. Early adoption is
permitted. The amendments in this update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is evaluating the impact
that adopting ASU 2016-16 will have on its consolidated financial statements.

In August 2016, the FASB issued ASU
2016-15, Statement of Cash FlowsClassification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash
receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is
permitted, including adoption in an interim period. The Company is evaluating the impact that adopting ASU 2016-15 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee ShareBased Payment Accounting. The amendments in this update
involve several aspects of accounting for equity-based payment transactions, including income tax consequences, classification of awards, and classification on the statement of cash flows. For public business entities, the amendments in this update
are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an
interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the
impact that adopting ASU 2016-09 will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02,
Leases. The amendments in this update include a new FASB ASC Topic 842, which supersedes Topic 840. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. For public business
entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all entities as of the beginning of interim or
annual reporting periods. The Company is currently evaluating the impact that adopting ASU 2016-02 will have on its consolidated financial statements and expects to raise significant Right of Use assets and significant, offsetting lease
liabilities. These amounts have not yet been quantified.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of
Inventory. The amendments in this update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards, under which an entity should measure inventory at the lower of
cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public business entities, the



F-18



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and must apply the amendments of this update prospectively.
The Company is evaluating the impact that adopting ASU 2015-11 will have on its consolidated financial statements, but does not expect that impact to be material.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with CustomersTopic 606, which supersedes the revenue
recognition requirements in FASB ASC 605. The new guidance established principles for reporting revenue and cash flows arising from an entitys contracts with customers. This new revenue recognition standard will replace most of the recognition
guidance within GAAP. This guidance was deferred by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, issued by the FASB in August 2015, which deferred the effective date of ASU 2014-09 from
annual and interim periods beginning after December 15, 2016 to annual and interim periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent
Considerations, which further clarifies the implementation guidance in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to
expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenues from Contracts with Customers: NarrowScope Improvements and Practical Expedients, which
amends the guidance in the new revenue standard on collectability, noncash consideration, presentation of sales tax, and transition. The amendments are intended to address implementation issues that were raised by stakeholders and provide
additional practical expedients to reduce the cost and complexity of applying the new revenue standard. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,
which addresses various technical corrections for the ASUs listed above. These standards are effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted
only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact adopting these standards will have on its consolidated financial
statements and expects to reach a conclusion during the upcoming fiscal year.

4. Acquisition

On May 8, 2015, Holdings, a wholly owned subsidiary of Topco, acquired approximately 94% of the outstanding interests of the Company, with
Topco acquiring the remaining 6% of the outstanding membership interests of the Company (the Acquisition). The purchase price was $396.4 million, which consisted of $386.3 million of cash consideration and $10.1 million of
noncash consideration in the form of an equity rollover by management owners of the Predecessor entity. The Acquisition was funded through an equity contribution by Holdings and Topco and borrowings under the Companys term loan agreement
(see Note 9).

The Acquisition resulted in a new basis of accounting for Holdings, and in accordance with the Companys election to
apply pushdown accounting, the impact of the Acquisition has been recognized in the Successor



F-19



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



periods of the Companys consolidated financial statements. The following table summarizes the final allocation of the $396.4 million purchase price to the assets acquired and liabilities
assumed (in thousands):



|                           |  |                  |         | 
|-------------------------- |  | ---------------- | ------- | 
|                           |  | As of May 8,2015 |        
|Assets acquired:           |  |                  |         | 
|Cash                       |  | $                | 535     | 
|Accounts receivable        |  |                  | 7,181   | 
|Inventories                |  |                  | 73,300  | 
|Prepaid expenses and other |  |                  | 13,427  | 
|Property and equipment     |  |                  | 78,684  | 
|Intangible assets          |  |                  | 192,300 | 
|Goodwill                   |  |                  | 196,572 | 
|Other assets               |  |                  | 256     | 
|                           |  |                  |         | 
|Total assets acquired      |  |                  | 562,255 | 
|                           |  |                  |         | 
|Liabilities assumed:       |  |                  |         | 
|Current liabilities        |  |                  | 75,583  | 
|Deferred income taxes      |  |                  | 86,098  | 
|Other liabilities          |  |                  | 4,184   | 
|                           |  |                  |         | 
|Total liabilities assumed  |  |                  | 165,865 | 
|                           |  |                  |         | 
|Net assets acquired        |  | $                | 396,390 | 
|                           |  |                  |         | 

As a result of the Company pushing down the effects of the Acquisition recorded by Holdings, certain
accounting adjustments are reflected in Intermediates consolidated financial statements, as discussed below.

The Company recorded
goodwill of $196.6 million in the Successor consolidated balance sheet. Goodwill recognized is primarily attributable to the acquisition of an assembled workforce and other intangible assets that do not qualify for separate recognition.

The fair value of the acquired intangible assets was estimated using the relief from royalty method for our trade name and the excess earnings
method for customer relationships. Under the relief-from-royalty method, the fair value estimate of the acquired trade name was determined based on the present value of the economic royalty savings associated with the ownership or possession of the
trade name based on an estimated royalty rate applied to the cash flows to be generated by the business. The fair value of the trade name acquired as a result of the Acquisition was $58.1 million.

The fair value of customer relationships acquired in the Acquisition was estimated using the excess earnings method. Under the excess earnings
method, the value of the intangible asset is equal to the present value of the after-tax cash flows attributable solely to the subject intangible asset. The fair value of customer relationships acquired as a result of the Acquisition was $134.2
million.

The Company also recorded certain favorable and unfavorable leasehold interests as a result of the Acquisition. Favorable
leasehold interests are included in other assets and unfavorable leasehold interests are included in other liabilities. The fair value of favorable leasehold interests is determined using the income approach, whereby the difference between
contractual rent and market rent is calculated for each remaining term for each lease, and then discounted to present value. All leasehold interests are amortized based upon patterns in which the economic benefits or obligations are expected to be
realized. Accordingly, the favorable and unfavorable leasehold interests are being amortized over the respective lease terms of the properties.



F-20



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The following are the favorable and unfavorable leasehold interests and their respective
weighted average useful lives (in thousands):



|                                   |  |                          |        |   |                             |  |           | 
|---------------------------------- |  | ------------------------ | ------ | - | --------------------------- |  | --------- | 
|                                   |  | Fair Value atAcquisition |        |   | WeightedAveragedUseful Life | 
|Leasehold Interests                |  |                          |        |   |                             |  |           | 
|Favorable                          |  | $                        | 161    |   |                             |  | 8.8 years | 
|Unfavorable                        |  |                          | (3,727 | ) |                             |  | 6.4 years | 
|                                   |  |                          |        |   |                             |  |           | 
|Net non-market leasehold interests |  | $                        | (3,566 | ) |                             |  |           | 
|                                   |  |                          |        |   |                             |  |           | 

The Company recorded $13.3 million of costs related to the Acquisition in the 2015 Predecessor period. These
costs are included as acquisition-related expenses on the consolidated statement of operations and comprehensive income (loss) of the 2015 Predecessor period and were paid at the close of the Acquisition by Holdings and included as part of
consideration for the acquired business. Additionally, there were management incentive bonuses awarded as part of the Acquisition that were deemed to be for the benefit of the acquired entity, and therefore, were recognized separately within sales,
general and administrative expenses on the consolidated statement of operations and comprehensive income (loss) in the 2015 Successor period over the service period of 18 months.

The following unaudited pro forma financial information summarizes the combined results of operations for the Company as though the
Acquisition occurred on February 2, 2014 (in thousands):



|                  |  |                                   |         |  |                                   |   |         |  
|----------------- |  | --------------------------------- | ------- |  | --------------------------------- | - | ------- | -
|                  |  | For the YearEnded January 30,2016 |         |  | For the YearEnded January 31,2015 |  
|Net sales         |  | $                                 | 562,015 |  |                                   | $ | 483,400 |  
|Net income (loss) |  | $                                 | 20,751  |  |                                   | $ | (18,138 | )

Net income for the pro forma year ended January 31, 2015 includes $13.3 million of acquisition-related
expenses incurred during the 2015 Predecessor period. Pro forma net income for the year ended January 31, 2015 also includes $10.5 million costs of goods sold incurred during the 2015 Successor period resulting from the increase in fair value
of merchandise inventory reflected in the purchase price allocation at the date of acquisition, as though the Acquisition occurred on February 2, 2014. These amounts are excluded from pro forma net income for the year ended
January 30, 2016. The unaudited pro forma financial information is presented for informational purposes only and may not be indicative of results that would have been achieved if the Acquisition had taken place on February 2, 2014.

5. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets include the following (in thousands):



|                                                |  |                  |        |  |                  |   |        | 
|----------------------------------------------- |  | ---------------- | ------ |  | ---------------- | - | ------ | 
|                                                |  | January 28, 2017 |        |  | January 30, 2016 |  
|Income tax receivable                           |  | $                |       |  |                  | $ | 4,407  | 
|Prepaid rent                                    |  |                  | 5,575  |  |                  |   | 5,207  | 
|Prepaid catalog costs                           |  |                  | 3,608  |  |                  |   | 3,326  | 
|Prepaid store supplies                          |  |                  | 2,032  |  |                  |   | 2,607  | 
|Other prepaid expenses                          |  |                  | 3,811  |  |                  |   | 4,281  | 
|Other current assets                            |  |                  | 3,533  |  |                  |   | 711    | 
|                                                |  |                  |        |  |                  |   |        | 
|Total prepaid expenses and other current assets |  | $                | 18,559 |  |                  | $ | 20,539 | 
|                                                |  |                  |        |  |                  |   |        | 



F-21



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



6. Goodwill and Other Intangible Assets

Goodwill

The following table shows
changes in the carrying amount of goodwill for the 2016, 2015 Successor and 2015 Predecessor periods (in thousands):



|                                               |  |   |         |  
|---------------------------------------------- |  | - | ------- | -
|Balance at January 31, 2015 (Predecessor)      |  | $ | 67,413  |  
|Elimination of Predecessor goodwill            |  |   | (67,413 | )
|Goodwill recognized as part of the Acquisition |  |   | 196,572 |  
|                                               |  |   |         |  
|Balance at January 30, 2016 (Successor)        |  |   | 196,572 |  
|Post measurement period tax adjustments        |  |   | 454     |  
|                                               |  |   |         |  
|Balance at January 28, 2017 (Successor)        |  | $ | 197,026 |  
|                                               |  |   |         |  

As a result of the Acquisition (see Note 4), the carrying value of the Companys goodwill in the
Predecessor period was eliminated and goodwill related to the Acquisition was recorded in the Successor period.

During 2016, the Company
performed a step zero impairment analysis and determined goodwill and indefinite-lived intangibles were not impaired based on a qualitative analysis. Also during 2016, the Company identified deferred tax liabilities that should have been recorded on
the acquisition date; as these were considered immaterial, the Company recognized these liabilities in the current period. At the end of the 2015 Successor period, the Company elected to perform a step one analysis to assess goodwill for any
potential impairment. The Company did not recognize impairment charges related to goodwill during the 2016 and 2015 Successor periods or the 2015 and 2014 Predecessor periods.

Intangible Assets

A summary of
intangible assets as of January 28, 2017 (Successor) and January 30, 2016 (Successor) is as follows (in thousands):



|                        |  |                                  |       |  |                              |                         |         |                              |               |   |         |       |  |   |                         |  |  |               |         |  |  |   |         |   |  |   |         | 
|----------------------- |  | -------------------------------- | ----- |  | ---------------------------- | ----------------------- | ------- | ---------------------------- | ------------- | - | ------- | ----- |  | - | ----------------------- |  |  | ------------- | ------- |  |  | - | ------- | - |  | - | ------- | 
|                        |  | WeightedAverageUsefulLife(Years) |       |  | January 28, 2017 (Successor) |                         |         | January 30, 2016 (Successor) |              
|                        |  |                                  | Gross |  |                              | AccumulatedAmortization |         |                              | Net BookValue |   |         | Gross |  |   | AccumulatedAmortization |  |  | Net BookValue |        
|Indefinite-lived:       |  |                                  |       |  |                              |                         |         |                              |               |   |         |       |  |   |                         |  |  |               |         |  |  |   |         |   |  |   |         | 
|Trade name              |  |                                  | N/A   |  |                              | $                       | 58,100  |                              |               | $ |        |       |  | $ | 58,100                  |  |  | $             | 58,100  |  |  | $ |        |   |  | $ | 58,100  | 
|Definite-lived:         |  |                                  |       |  |                              |                         |         |                              |               |   |         |       |  |   |                         |  |  |               |         |  |  |   |         |   |  |   |         | 
|Customer Relationships  |  |                                  | 13.2  |  |                              |                         | 134,200 |                              |               |   | (28,817 | )     |  |   | 105,383                 |  |  |               | 134,200 |  |  |   | (12,335 | ) |  |   | 121,865 | 
|                        |  |                                  |       |  |                              |                         |         |                              |               |   |         |       |  |   |                         |  |  |               |         |  |  |   |         |   |  |   |         | 
|Total Intangible Assets |  |                                  |       |  |                              | $                       | 192,300 |                              |               | $ | (28,817 | )     |  | $ | 163,483                 |  |  | $             | 192,300 |  |  | $ | (12,335 | ) |  | $ | 179,965 | 
|                        |  |                                  |       |  |                              |                         |         |                              |               |   |         |       |  |   |                         |  |  |               |         |  |  |   |         |   |  |   |         | 



F-22



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The definite-lived intangible assets are amortized over the period the Company expects to
receive the related economic benefit, which for customer lists is based upon estimated future net cash inflows. The estimated useful lives of intangible assets are as follows:



|                                                                |  |                             |  |                      
|--------------------------------------------------------------- |  | --------------------------- |  | ---------------------
|For intangible assets prior to the Acquisition
(Predecessor)    |  |                            
|Asset                                                           |  | Amortization Method         |  | Estimated Useful Life
|Customer lists                                                  |  | Pattern of economic benefit |  | 9  14 years         
|Non-compete agreements                                          |  | Straight-line basis         |  | 1.5 years            
|                                                                | 
|For intangible assets subsequent to the Acquisition
(Successor) |  |                            
|Asset                                                           |  | Amortization Method         |  | Estimated Useful Life
|Customer lists                                                  |  | Pattern of economic benefit |  | 9  16 years         

Total amortization expense for these amortizable intangible assets was $16.5 million, $12.3 million,
$1.8 million and $7.2 million, for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively. The Company did not recognize any impairment charges related to definite and indefinite-lived intangible assets during the 2016, 2015
Successor, 2015 Predecessor and 2014 periods, respectively.

The estimated amortization expense for each of the next five years and
thereafter is as follows (in thousands).



|            |  |                              |         | 
|----------- |  | ---------------------------- | ------- | 
|Fiscal Year |  | EstimatedAmortizationExpense |        
|2017        |  | $                            | 14,522  | 
|2018        |  |                              | 12,784  | 
|2019        |  |                              | 11,263  | 
|2020        |  |                              | 10,015  | 
|2021        |  |                              | 9,005   | 
|Thereafter  |  |                              | 47,794  | 
|            |  |                              |         | 
|Total       |  | $                            | 105,383 | 
|            |  |                              |         | 

7. Property and Equipment

Property and equipment at January 28, 2017 and January 30, 2016 consist of the following (in thousands):



|                                    |  |                             |         |   |                             |   |         |  
|----------------------------------- |  | --------------------------- | ------- | - | --------------------------- | - | ------- | -
|                                    |  | January 28, 2017(Successor) |         |   | January 30, 2016(Successor) |  
|Leasehold improvements              |  | $                           | 67,966  |   |                             | $ | 51,896  |  
|Furniture, fixtures and equipment   |  |                             | 35,765  |   |                             |   | 27,973  |  
|Computer hardware and software      |  |                             | 25,679  |   |                             |   | 10,665  |  
|                                    |  |                             |         |   |                             |   |         |  
|Total property and equipment, gross |  |                             | 129,410 |   |                             |   | 90,534  |  
|Accumulated depreciation            |  |                             | (36,619 | ) |                             |   | (16,924 | )
|                                    |  |                             |         |   |                             |   |         |  
|                                    |  |                             | 92,791  |   |                             |   | 73,610  |  
|Construction in progress            |  |                             | 9,531   |   |                             |   | 13,200  |  
|                                    |  |                             |         |   |                             |   |         |  
|Property and equipment, net         |  | $                           | 102,322 |   |                             | $ | 86,810  |  
|                                    |  |                             |         |   |                             |   |         |  



F-23



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Construction in progress is primarily comprised of leasehold improvements, furniture,
fixtures and equipment related to unopened retail stores and costs incurred related to the implementation of certain computer software. Capitalized software, subject to amortization, included in property and equipment at January 28, 2017
and January 30, 2016 had a cost basis of approximately $18.7 million and $6.7 million, respectively, and accumulated amortization of $5.7 million and $2.4 million, respectively.

Total depreciation expense was $20.4 million, $17.0 million, $3.5 million and $12.1 million, for the 2016, 2015 Successor, 2015 Predecessor
and 2014 periods, respectively.

During the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, the Company did not recognize any
impairment charges associated with property and equipment.

The Company capitalized interest in connection with construction in progress
of $0.5 million, $0.4 million, $0.1 million and $0.4 million for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively.

8.
Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities include the following (in thousands):



|                                                     |  |                             |        |  |                             |   |        | 
|---------------------------------------------------- |  | --------------------------- | ------ |  | --------------------------- | - | ------ | 
|                                                     |  | January 28, 2017(Successor) |        |  | January 30, 2016(Successor) |  
|Accrued payroll and benefits                         |  | $                           | 10,387 |  |                             | $ | 14,066 | 
|Accrued returns reserve                              |  |                             | 6,883  |  |                             |   | 6,432  | 
|Gift certificates redeemable                         |  |                             | 6,109  |  |                             |   | 5,431  | 
|Accrued professional fees                            |  |                             | 4,681  |  |                             |   | 1,701  | 
|Taxes, other than income taxes                       |  |                             | 2,950  |  |                             |   | 3,437  | 
|Accrued occupancy                                    |  |                             | 2,546  |  |                             |   | 1,862  | 
|Other                                                |  |                             | 12,565 |  |                             |   | 10,662 | 
|                                                     |  |                             |        |  |                             |   |        | 
|Total accrued expenses and other current liabilities |  | $                           | 46,121 |  |                             | $ | 43,591 | 
|                                                     |  |                             |        |  |                             |   |        | 

The following table reflects the changes in the accrued returns reserve for the 2016, 2015 Successor, 2015
Predecessor and 2014 periods (in thousands):



|                                                          |  |                    |       |  |                   |   |       |            |  |   |              |  |  |   |       | 
|--------------------------------------------------------- |  | ------------------ | ----- |  | ----------------- | - | ----- | ---------- |  | - | ------------ |  |  | - | ----- | 
|Accrued returns reserve                                   |  | Beginningof Period |       |  | ChargedtoExpenses |   |       | Deductions |  |   | End ofPeriod | 
|Fiscal Year Ended January 31, 2015 (Predecessor)          |  | $                  | 4,221 |  |                   | $ | 708   |            |  | $ |             |  |  | $ | 4,929 | 
|Period from February 1, 2015 to May 7, 2015 (Predecessor) |  |                    | 4,929 |  |                   |   | 1,231 |            |  |   |             |  |  |   | 6,160 | 
|Period from May 8, 2015 to January 30, 2016 (Successor)   |  |                    | 6,160 |  |                   |   | 272   |            |  |   |             |  |  |   | 6,432 | 
|Fiscal Year Ended January 28, 2017 (Successor)            |  |                    | 6,432 |  |                   |   | 451   |            |  |   |             |  |  |   | 6,883 | 



F-24



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



9. Debt

The components of the Companys outstanding debt were as follows (in thousands):



|                                         |  |                             |         |   |                             |   |         |  
|---------------------------------------- |  | --------------------------- | ------- | - | --------------------------- | - | ------- | -
|                                         |  | January 28, 2017(Successor) |         |   | January 30, 2016(Successor) |  
|Term loan                                |  | $                           | 275,975 |   |                             | $ | 248,750 |  
|Subordinated debt                        |  |                             |        |   |                             |   |        |  
|                                         |  |                             |         |   |                             |   |         |  
|Total debt                               |  |                             | 275,975 |   |                             |   | 248,750 |  
|Discount on debt and debt issuance costs |  |                             | (8,736  | ) |                             |   | (8,772  | )
|Less: Current portion                    |  |                             | (2,799  | ) |                             |   | (2,500  | )
|                                         |  |                             |         |   |                             |   |         |  
|Net long-term debt                       |  | $                           | 264,440 |   |                             | $ | 237,478 |  
|                                         |  |                             |         |   |                             |   |         |  

The Company recorded interest expense of $18.7 million, $11.9 million, $4.6 million and $17.9 million, in
the 2016, 2015 Successor, 2015 Predecessor and 2014 periods, respectively.

Successor Debt

Term Loan Credit Agreement

On May 8, 2015, the Company entered into a term loan credit agreement (the Term Loan Agreement) in conjunction with the
Acquisition (see Note 4). The seven-year Term Loan Agreement provides for borrowings of $250.0 million. The Company can elect, at its option, the applicable interest rate for borrowings under the Term Loan Agreement using a LIBOR or Base Rate
variable interest rate plus an applicable margin. LIBOR loans under the Term Loan Agreement accrue interest at a rate equal to LIBOR plus 5.00%, with a minimum LIBOR per annum of 1.00%. Base Rate loans under the Term Loan Agreement accrue interest
at a rate equal to (i) the greatest of (a) the financial institutions prime rate, (b) the Federal Funds Effective Rate plus 0.50%, or (c) LIBOR, with a minimum LIBOR of 1.00% plus 1.00%, and (d) 2.00%.

On May 27, 2016, the Company entered into an agreement to amend (the Term Loan Amendment) our Term Loan Agreement to borrow
an additional $40.0 million in additional loans, for a total of $288.1 million outstanding, to permit certain dividends and to make certain adjustments to the financial covenant. The other terms and conditions of the Term Loan remained
substantially unchanged.

On January 18, 2017, the Company made a voluntary prepayment of $10.1 million, including accrued interest,
on our Term Loan.

Current borrowings under the Term Loan Agreement accrue interest at a rate equal to LIBOR plus 5.00%, with a minimum
LIBOR per annum of 1.00%, and are payable on a quarterly basis. The rate per annum was 6.00% throughout fiscal year 2016 and the 2015 Successor period. Repayments of $0.7 million are payable quarterly, beginning on October 31, 2015
and continuing until maturity on May 8, 2022, when the remaining outstanding principal balance of $261.3 million is due.

The Company
incurred $11.3 million of debt issuance costs in connection with the Term Loan Agreement and Term Loan Amendment. These fees are presented as a direct deduction from the carrying amount of the long-term debt on the consolidated balance sheet.

As of January 28, 2017 (Successor), the Company had $276.0 million of outstanding borrowings under the Term Loan Agreement. During 2016,
the Company recorded interest expense of $18.7 million on the Term Loan Agreement. During 2016, $1.7 million of the debt issuance cost was amortized to interest expense.



F-25



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Borrowings under the Term Loan Agreement are collateralized by all of the assets of the
Company. In connection with the Term Loan Agreement, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements. In addition, there are negative covenants, including
certain restrictions on the Companys ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, undergo a change in control, make
advances, investments and loans, or modify its organizational documents. As of January 28, 2017 (Successor), the Company was in compliance with all financial covenants.

Asset-Based Revolving Credit Agreement

On May 8, 2015, the Company entered into a five-year secured $40.0 million asset-based revolving credit facility agreement (the ABL
Facility). The ABL Facility matures on May 8, 2020.

Under the terms of this agreement, the ABL Facility provides for
borrowings up to (i) 90% of eligible credit card receivables, plus (ii) 85% of eligible accounts receivable, plus (iii) the lesser of (a) 100% of the value of eligible inventory at such time and (b) 90% of the net orderly
liquidation value of eligible inventory at such time, plus (iv) the lesser of (a) 100% of the value of eligible in-transit inventory at such time, (b) 90% of the net orderly liquidation value of eligible in-transit inventory at such
time and (c) the in-transit maximum amount (the in-transit maximum amount is not to exceed $12.5 million during the 1st and 3rd calendar
quarters and $10.0 million during the 2nd and 4th calendar quarters), less (v) certain reserves established by the lender, as defined in
the ABL Facility.

The ABL Facility consists of revolving loans and swingline loans. Borrowings classified as revolving loans under
the ABL Facility may be maintained as either LIBOR or Base Rate loans, each of which has a variable interest rate plus an applicable margin. Borrowings classified as swingline loans under the ABL Facility are Base Rate loans. LIBOR loans
under the ABL Facility accrue interest at a rate equal to LIBOR plus a spread of 2.00% from May 8, 2015 to August 31, 2015, and thereafter ranging from 1.50% to 1.75%, depending on borrowing amounts. Base Rate loans under the ABL Facility
accrue interest at a rate equal to (i) the greatest of (a) the financial institutions prime rate, (b) the overnight Federal Funds Effective Rate plus 0.50%, (c) LIBOR plus 1.00%, and (d) 2.00%, plus (ii) a spread
of 1.00% from May 8, 2015 to August 31, 2015, and thereafter ranging from 0.50% to 0.75%, depending on borrowing amounts.

Interest on each LIBOR loan is payable on the last day of each interest period and no more than quarterly, and interest on each Base Rate loan
is payable in arrears on the last business day of April, July, October and January. For both LIBOR and Base Rate loans, interest is payable periodically upon repayment, conversion or maturity, with interest periods ranging between 30 to 180 days at
the election of the Company, or 12 months with the consent of all lenders.

The ABL Facility also requires the quarterly payment, in
arrears, of a commitment fee. The commitment fee is payable in an amount equal to 0.375% from May 8, 2015 to July 1, 2016, and thereafter at an amount equal to (i) 0.375% for each calendar quarter during which historical excess
availability is greater than 50% of availability, and (ii) 0.25% for each calendar quarter during which historical excess availability is less than or equal to 50% of availability.

During the fiscal year ended January 28, 2017 (Successor), there were no amounts drawn or outstanding under the ABL Facility. Based
on the terms of the agreement and the reduction for the letters of credit, the Companys available borrowing capacity under the ABL Facility as of January 28, 2017 (Successor) was $37.9 million.



F-26



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The Company incurred $1.1 million of debt issuance costs in connection with the related ABL
Facility, which were capitalized and are included in other assets on the consolidated balance sheet. During 2016, $0.2 million of the debt issuance cost was amortized to interest expense.

Borrowings under the ABL Facility are collateralized by a first lien on accounts receivable and inventory. In connection with the ABL
Facility, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements. In addition, there are negative covenants, including certain restrictions on the Companys
ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with other entities, undergo a change in control, make advances, investments and loans or modify
its organizational documents. As of January 28, 2017 (Successor), the Company was in compliance with all financial covenants.

The
Term Loan Agreement and the ABL Facility contain provisions on the occurrence of a default event. In the event of a payment default that is not cured within five business days or is not waived, or a covenant default that is not cured within 30
business days or is not waived, the Companys obligations under these credit facilities may be accelerated. In addition, a 2% interest surcharge will be imposed during events of default.

Letters of Credit

As of
January 28, 2017 (Successor) and January 30, 2016 (Successor), there were outstanding letters of credit of $2.1 million and $1.5 million, respectively, which reduced the availability under the ABL Facility. As of January 28, 2017
(Successor), the maximum commitment for letters of credit was $10.0 million. Letters of credit accrue interest at a rate equal to revolving loans maintained as Base Rate loans under the ABL facility. In addition, a 2% interest surcharge will be
imposed during events of default. The Company primarily used letters of credit to secure payment of workers compensation claims. Letters of credit are generally obtained for a one year term and automatically renew annually, and would only be
drawn upon if the Company fails to comply with its contractual obligations.

Payments of Debt Obligations Due by Period

As of January 28, 2017 (Successor), minimum future principal amounts payable under the Companys Term Loan Agreement are as follows
(in thousands):



|            |  |   |         | 
|----------- |  | - | ------- | 
|Fiscal Year |  |   |        
|2017        |  | $ | 2,799   | 
|2018        |  |   | 2,799   | 
|2019        |  |   | 2,799   | 
|2020        |  |   | 2,799   | 
|2021        |  |   | 2,799   | 
|Thereafter  |  |   | 261,980 | 
|            |  |   |         | 
|Total       |  | $ | 275,975 | 
|            |  |   |         | 

Predecessor Debt

Prior to the Acquisition on May 8, 2015, the Company had a term loan facility, a revolving credit facility and a subordinated debt
facility. In conjunction with the Acquisition (see Note 4), these facilities were settled and the agreements were terminated. Certain prepayment penalties and fees of $2.9 million related to the settlement of these facilities are not
reflected in either the Predecessor or Successor consolidated statements of operation



F-27



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



and comprehensive income (loss) periods, but instead are presented on the black line. These terminated facility agreements are discussed below.

Term Loan Facility

On
April 29, 2011, the Company entered into a term loan facility agreement and an asset-based revolving credit facility agreement. Both the term loan facility and the asset-based revolving credit facility were subsequently amended on
September 27, 2012. These facilities were provided through JJ Lease Funding Corp. and JJ AB Funding Corp., respectively, both of which were variable interest entities established to facilitate such financings (see Note 10).

The amended six-year term loan facility agreement provided for borrowings of $120.0 million. Borrowings under the amended term loan facility
were maintained as either Eurodollar or Base Rate loans, each of which had a variable interest rate plus an applicable margin. Eurodollar loans under the amended term loan facility accrued interest at a rate equal to adjusted LIBOR plus 8.50%, with
a minimum adjusted LIBOR per annum of 1.50%. Base Rate loans under the amended term loan facility accrued interest at a rate equal to (i) the greatest of (a) the financial institutions prime rate, (b) the Federal Funds Effective
Rate plus 0.50% and (c) adjusted LIBOR, with a minimum adjusted LIBOR of 1.50%, plus 1.00%, plus (ii) 7.50%. The rate per annum was 10.00% as of January 31, 2015 (Predecessor). Borrowings under the amended term loan facility
were collateralized by all of the assets of the Company and the agreement contained a provision requiring scheduled quarterly interest and principal payments.

Revolving Credit Facility

The five-year amended secured asset-based revolving credit facility agreement provided for borrowings up to $40.0 million. Under the terms of
the agreement, the asset-based revolving credit facility agreement provided for borrowings up to (i) 90% of eligible credit card receivables, plus (ii) 85% of the net orderly liquidation value of eligible inventory, plus (iii) the
lesser of (a) the in-transit maximum amount or (b) 85% of the net orderly liquidation value of eligible in-transit inventory, less (iv) certain reserves established by the lender, as defined in the agreement. Borrowings under the
asset-based revolving credit facility agreements were collateralized by a first lien on accounts receivable and inventory.

The
asset-based revolving credit facility consisted of revolving loans and swingline loans. Borrowings classified as revolving loans under the asset-based revolving credit facility were able to be maintained as either Eurodollar or Base Rate loans, each
of which had a variable interest rate plus an applicable margin. Borrowings classified as swingline loans under the asset-based revolving credit facility were Base Rate loans. Eurodollar loans accrued interest at a rate equal to LIBOR plus a spread
ranging from 2.25% to 2.75%, depending on borrowing amounts. Base Rate loans accrued interest at a rate equal to (i) the greatest of (a) the financial institutions prime rate, (b) the Federal Funds Effective Rate plus 0.50% and
(c) LIBOR plus 1.00%, plus (ii) a spread ranging from 1.25% to 1.75%, depending on borrowing amounts.

Interest on each
Eurodollar loan was payable on the last day of each interest period, and interest on each Base Rate loan was payable on the last business day of April, July, October and January. For both Eurodollar and Base Rate loans, interest was payable upon
repayment maturity, with durations ranging between 30 to 90 days.

The asset-based revolving credit facility agreement also required the
quarterly payment, in arrears, of a commitment fee of 0.5% per annum of the average daily unused portion of the facility as well as a fee on the balance of the outstanding letters of credit. As of January 31, 2015 (Predecessor), there
were no amounts outstanding under the asset-based revolving credit facility agreement. Based on the terms of the agreement, the



F-28



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Predecessors available borrowing capacity under the asset-based revolving credit facility agreement as of January 31, 2015 (Predecessor) was $36.7 million.

Subordinated Debt Facility

On September 27, 2012, the Company entered into a six-year subordinated debt facility agreement with an affiliate of the Company in
conjunction with the amendment to the term loan facility agreement and asset-based revolving credit facility agreement. The subordinated debt facility was an unsecured mezzanine term loan and provided for borrowings of $30.0 million. This
facility was provided through JJ Mezz Funding Corp., which was a variable interest entity established to facilitate such financing (see Note 10).

Borrowings under the mezzanine term loan accrued interest at a rate of 24.0%. The 24.0% interest rate on the mezzanine term loan included
a Payment in Kind (PIK) interest factor whereby one half of the 24.0% interest due was payable in cash and one half was added to the outstanding principal amount of the mezzanine term loan. The outstanding principal balance was to
be payable upon maturity of the mezzanine term loans on September 27, 2018. As a result of the PIK interest factor, additional long-term debt of $4.5 million was incurred as of January 31, 2015 (Predecessor). As of January 31, 2015
(Predecessor), the Company had $39.7 million of outstanding borrowings under the mezzanine term loan.

In connection with the amended term
loan facility agreement, amended asset-based revolving loan agreement and the subordinated debt facility agreement, the Company was subject to various financial reporting, financial and other covenants, including maintaining specific liquidity
measures. In addition, there were negative covenants including certain restrictions on the ability to: incur additional indebtedness, create liens, enter into transactions with affiliates, transfer assets, pay dividends, consolidate or merge with
other entities, or undergo a change in control. Each loan also contained provisions in the event of default.

10. Variable Interest Entities

During the Predecessor periods the Company maintained several financing facilities with third-party financing companies, including JJ
Lease Funding Corp., JJ AB Funding Corp. and JJ Mezz Funding Corp. The financing facilities were independent special purpose entities established for the sole purpose of obtaining financing for the benefit and at the direction of the Company. Each
of these facilities was deemed a VIE, for which the Company was determined to be the primary beneficiary. Each of these VIEs was consolidated within the Companys financial statements for the 2015 Predecessor and 2014 periods.

Contemporaneously with the Acquisition, on May 8, 2015 (see Note 4), these financing facilities were repaid and terminated by the
Company. These three financing facilities ceased being VIEs to the Company and were no longer consolidated in the 2015 Successor period.

JJ Lease
Funding Corp.

The Company entered into a sale leaseback arrangement with JJ Lease Funding Corp., whereby the Company sold and
immediately leased back from JJ Lease Funding Corp. certain tangible and intangible assets of the Company in exchange for cash consideration to the Company of $120.0 million. The Company did not recognize any gain or loss on the sale of its assets.

The Companys lease financing arrangement with JJ Lease Funding Corp. was funded through a term loan agreement between JJ Lease
Funding Corp. and a commercial lender. The terms of the term loan agreement were structured such that the aggregated payments due under the lease financing arrangement would equal the



F-29



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



principal and interest due under the term loan. When the term loan is repaid in full, the ownership of the assets would be reverted back to the Company. JJ Lease Funding Corp. does not have any
other assets or liabilities or income and expense other than those associated with the term loan and the sale leaseback arrangement. Under the terms of the lease financing arrangement, the Companys obligations are limited to amounts due to JJ
Lease Funding Corp. and the Company has no obligations under the term loan facility. The Company determined that it was the primary beneficiary of JJ Lease Funding Corp. due to i) the establishment of JJ Lease Funding Corp. being for the sole
purpose of effecting the lease financing arrangement at the direction of the Company and ii) the Company absorbing any potential variability related to the term loan based on its payment terms equaling the payment terms of the lease financing
arrangement.

During the 2015 Predecessor and 2014 periods, the Company consolidated $1.6 million and $8.0 million, respectively, in
interest expense related to the term loan as interest expense within its consolidated statements of operations and comprehensive income (loss).

JJ
AB Funding Corp.

The Company entered into a commodities purchase financing agreement with JJ AB Funding Corp., whereby JJ AB
Funding Corp. entered into a five-year secured $40.0 million asset-based revolving credit facility with a commercial lender. Under the terms of the commodities purchase financing agreement, the Companys obligations were limited to amounts due
to JJ AB Funding Corp. and the Company had no obligations under the revolving credit facility. Amounts due by the Company were equal to the purchase price of the commodities purchased plus a nominal agreed upon profit rate, which were equal in total
to JJ AB Funding Corp.s interest and principal obligations under the revolving credit facility.

JJ AB Funding Corp. does not have
any other assets or liabilities or income and expense other than those associated with the revolving credit facility and commodities purchase financing agreement. The Company determined that it was the primary beneficiary of JJ AB Funding Corp. due
to i) the establishment of JJ AB Funding Corp. being for the sole purpose of effecting the commodities purchase financing agreement at the direction of the Company and ii) the Company absorbing any potential variability related to the revolving
credit facility based on its payment terms equaling the payment terms of the commodities purchase financing agreement.

During the 2015
Predecessor and 2014 periods, the Company consolidated $0.3 million and $0.7 million, respectively, in interest expense related to the revolving credit facility as interest expense within its consolidated statements of operations and comprehensive
income (loss).

JJ Mezz Funding Corp.

The Company entered into a commodities purchase financing arrangement with JJ Mezz Funding Corp., whereby JJ Mezz Funding Corp. entered into a
six-year unsecured $30.0 million subordinated debt facility with a commercial lender. Amounts due under the subordinated debt facility were to be paid through the proceeds received under JJ Mezz Funding Corp.s commodities purchase financing
arrangement, whose payments were guaranteed by the Company. Payments due by the Company to JJ Mezz Funding Corp. for the commodities purchase financing arrangement were equal to the purchase price of the commodities purchased plus a nominal agreed
upon profit rate, which were equal in total to JJ Mezz Funding Corp.s interest and principal obligations under the subordinated debt facility.

JJ Mezz Funding Corp. does not have any other assets or liabilities or income and expense other than those associated with the subordinated
debt facility and commodities purchase financing arrangement. Under the terms



F-30



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



of the commodities purchase financing arrangement, the Companys obligations were limited to amounts due to JJ Mezz Funding Corp. and the Company had no obligations under the subordinated
debt facility. The Company determined that it was the primary beneficiary of JJ Mezz Funding Corp. due to i) the establishment of JJ Mezz Funding Corp. being for the sole purpose of effecting the commodities purchase financing arrangement at the
direction of the Company and ii) the Company absorbing any potential variability related to the subordinated debt facility based on its payment terms equaling the payment terms of the commodities purchase financing arrangement.

During the 2015 Predecessor and 2014 periods, the Company consolidated $2.7 million and $9.5 million, respectively, in interest expense
related to the subordinated debt facility as interest expense within its consolidated statements of operations and comprehensive income (loss).

11.
Commitments and Contingencies

Operating Lease Agreements

The Company leases retail, distribution and corporate office facilities under various operating leases having initial or remaining terms of
more than one year. Many of these leases require that the Company pay taxes, maintenance, insurance, and certain other operating expenses applicable to leased properties. Rental payments under the terms of some store facility leases include
contingent rent based on sales levels, whereas other payment terms are based on the greater of a minimum rental payment or a percentage of the stores gross receipts.

The original lease terms under existing arrangements range from 1-20 years and may or may not include renewal options, rent escalation
clauses, and/or landlord leasehold improvement incentives. In the case of operating leases with rent escalation clauses, the payment escalations are accrued and the rent expense is recognized on a straight-line basis over the lease term. The Company
recorded a deferred lease liability of $6.5 million and $3.3 million as of January 28, 2017 (Successor) and January 30, 2016 (Successor), respectively. In certain instances, the Company also receives allowances for its store
leases, which it accrues and amortizes ratably over the life of the lease. The Company maintained a tenant improvement incentive liability of $9.9 million and $5.1 million as of and January 28, 2017 (Successor) and January 30, 2016
(Successor), respectively.

The following table summarizes future minimum rental payments required under all non-cancelable operating
lease obligations as of January 28, 2017 (Successor) (in thousands):



|            |  |   |         | 
|----------- |  | - | ------- | 
|Fiscal Year |  |   |        
|2017        |  | $ | 44,449  | 
|2018        |  |   | 39,344  | 
|2019        |  |   | 35,425  | 
|2020        |  |   | 33,873  | 
|2021        |  |   | 32,033  | 
|Thereafter  |  |   | 118,320 | 
|            |  |   |         | 
|Total       |  | $ | 303,444 | 
|            |  |   |         | 

Total rental expense was $55.6 million, $36.2 million, $12.7 million and $44.3 million for the 2016, 2015
Successor period, 2015 Predecessor period and 2014, respectively, exclusive of contingent rental expense recorded of $2.2 million, $1.8 million, $0.5 million and $1.9 million for the same respective periods.



F-31



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Legal Proceedings

The Company is subject to various legal proceedings that arise in the ordinary course of business. The Company accrues for liabilities
associated with these proceedings which are determined to be probable and can be reasonably estimated. Although the outcome of such proceedings cannot be predicted with certainty, management does not believe that it is reasonably possible that
these outstanding proceedings will result in unaccrued losses that would be material. The Company maintains insurance policies to mitigate the financial impact of certain litigation.

Concentration Risk

An adverse
change in the Companys relationships with its key suppliers, or loss of the supply of one of the Companys key products for any reason, could have a material effect on the business and results of operations of the Company. One supplier
accounted for approximately 16.4% of the Companys purchases during 2016.

Other Commitments

In addition to the lease commitments disclosed above, the Company enters into other cancelable and noncancelable commitments. Typically, these
commitments are for less than one year in duration and are principally for the procurement of inventory. Preliminary commitments with the Companys merchandise vendors typically are made six to nine months in advance of the planned receipt
date. The Company had outstanding purchase commitments of $125.1 million as of January 28, 2017 (Successor).

12. Other Liabilities

Other liabilities include the following (in thousands):



|                                |  |                             |        |  |                             |   |        | 
|------------------------------- |  | --------------------------- | ------ |  | --------------------------- | - | ------ | 
|                                |  | January 28, 2017(Successor) |        |  | January 30, 2016(Successor) |  
|Deferred rent                   |  | $                           | 6,493  |  |                             | $ | 3,326  | 
|Deferred lease credits          |  |                             | 9,878  |  |                             |   | 5,078  | 
|Unfavorable leasehold interests |  |                             | 2,411  |  |                             |   | 3,137  | 
|Other                           |  |                             | 1,350  |  |                             |   | 473    | 
|                                |  |                             |        |  |                             |   |        | 
|Total other liabilities         |  | $                           | 20,132 |  |                             | $ | 12,014 | 
|                                |  |                             |        |  |                             |   |        | 

13. Preferred Capital and Members Equity

Successor

On May 8, 2015,
Holdings, a wholly owned subsidiary of Topco, acquired approximately 94% of the 1,000,000 issued and outstanding interests of the Company, with Topco acquiring the remaining 6% of the issued and outstanding membership interests of the Company (see
Note 4). In connection with the Acquisition, the Predecessor LLC Agreement of the Company was amended. The terms of the amended agreement were substantially the same as the previously amended and restated agreement, including the rights of
Common Unit holders.

On February 24, 2017, Jill Intermediate LLC converted from a Delaware limited liability company into a Delaware
corporation named to J.Jill, Inc. In conjunction with the conversion, all 1,000,000 of the outstanding equity interests were converted into 43,747,944 shares of common stock.



F-32



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Predecessor

In conjunction with the Acquisition (see Note 4), the securities that were in existence in the Predecessor periods, as further discussed
below, were settled and no longer outstanding subsequent to May 8, 2015.

Common Units

The Predecessor LLC Agreement, as amended and restated (the Predecessor LLC Agreement), authorized the Predecessor to issue up to
1,000,000 Common Units. In April 2011, the Predecessor issued 1,000,000 Common Units, 100 Class A Units and 3,927,601.3 Class B Units, and simultaneously entered into a commodities purchase agreement (the Commodities Purchase
Agreement) for purposes of providing a preferred capital investment of $72.8 million (the Preferred Capital) to an investor of the Predecessor. The voting and liquidation rights of the holders of the Predecessors Common
Units were subject to and qualified by rights, powers and preferences of holders of the Preferred Capital, and Class A and Class B Units as set forth below. As of January 31, 2015 (Predecessor), 1,000,000 Common Units were outstanding and
no Common Units were available for future issuance.

Preferred Capital

The Preferred Capital is classified outside of members equity because it contains certain redemption features that are not solely within
the control of the Company. The voting and liquidation rights of the Preferred Capital were subject to and qualified by rights, powers and preferences of the Predecessors investors as set forth below.

Class A and B Units

The Predecessors LLC Agreement authorized the Predecessor to issue up to 100 Class A Units and 3,927,601.3 Class B Units. In April
2011, the Predecessor issued 100 Class A Units and 3,927,601.3 Class B Units and received $1,000 and $39.3 million, respectively, as a capital contribution upon issuance. The voting and liquidation rights of the holders of the
Predecessors Class A and Class B Units were subject to and qualified by rights, powers and preferences of the holder of the Preferred Capital as set forth below. As of January 31, 2015 (Predecessor), 100 Class A Units and
3,927,601.3 Class B Units were outstanding and no Class A or Class B Units were available for future issuance.

Non-Liquidating Distributions

In the event of a non-liquidating distribution, at the discretion of the Predecessor, the holder of the Preferred Capital and the holders of
Class A and Class B Units as a group, were limited to an amount up to each holders aggregate unreturned capital on a pro rata basis. Any remaining amounts were to be distributed to holders of Common Units.

Liquidation Preferences

As defined within the Predecessor LLC Agreements, if the Predecessor is liquidated, dissolved or wound-up, the holder of the Preferred Capital
would have been entitled to their return of capital in preference of holders of Class A and Class B Units, while Common Unit holders would have been entitled to any remaining liquidating distributions. The holder of the Preferred Capital
was entitled to all liquidating distributions paid by the Predecessor until such payments equal the aggregate original issuance price paid of $72.8 million.



F-33



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Subject to the payment in full of amounts due to the holder of the Preferred Capital, each
holder of Class A and B Units would have been entitled to any liquidating distributions paid by the Predecessor up to an amount equal to each holders aggregate original issuance price paid of $1,000 and $39.3 million, respectively, on a
pro rata basis.

Any remaining liquidating distributions paid by the Predecessor, subsequent to payment in full of amounts due first to
the holder of the Preferred Capital and second to holders of Class A and Class B Units, would have been paid out to holders of Common Units.

Redemption Rights

The
Predecessor was established with a finite life of 49 years, commencing on the date of filing of its certificate of formation. At the end of its 49-year term, the Predecessor would be liquidated and all outstanding unreturned capital would be
distributed to the then current owners, in accordance with the liquidation preferences described above. Owners were also entitled to a distribution of their unreturned capital prior to the completion of the Predecessors 49-year term upon the
occurrence of an earlier liquidation event as defined by the Commodities Purchase Agreement.

Voting Rights

The Preferred Capital, Class A Units, Class B Units and Common Units held no voting rights. The Predecessor was governed by the board of
managers, for which the holders of the Preferred Capital, Class A and Class B Units each had the right to appoint members to the board of managers, as determined by the Predecessor LLC Agreements.

14. Income Taxes

The provision for
income taxes for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods consists of the following (in thousands):



|                           |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|-------------------------- |  | ---------------------------------------- | ------ | - | ------------------------------------------- | - | ------ | ------------------------------------------- |  | - | ---------------------------------------- | - |  | - | ------ | -
|                           |  | Successor                                |        |   | Predecessor                                 |  
|                           |  | For the FiscalYear EndedJanuary 28, 2017 |        |   | For the PeriodMay 8, 2015 toJanuary 30,2016 |   |        | For the PeriodFebruary 1,2015 to May 7,2015 |  |   | For the FiscalYear EndedJanuary 31, 2015 |  
|Current                    |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|U.S. Federal               |  | $                                        | 17,442 |   |                                             | $ | 8,052  |                                             |  | $ | 1,957                                    |   |  | $ | 9,843  |  
|State and local            |  |                                          | 3,686  |   |                                             |   | 1,533  |                                             |  |   | 503                                      |   |  |   | 2,920  |  
|                           |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|Total current              |  |                                          | 21,128 |   |                                             |   | 9,585  |                                             |  |   | 2,460                                    |   |  |   | 12,763 |  
|                           |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|Deferred tax benefit       |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|U.S. Federal               |  |                                          | (3,663 | ) |                                             |   | (6,212 | )                                           |  |   | (793                                     | ) |  |   | (1,615 | )
|State and local            |  |                                          | (796   | ) |                                             |   | (1,051 | )                                           |  |   | (168                                     | ) |  |   | (288   | )
|                           |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|Total deferred tax benefit |  |                                          | (4,459 | ) |                                             |   | (7,263 | )                                           |  |   | (961                                     | ) |  |   | (1,903 | )
|                           |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  
|Provision for income taxes |  | $                                        | 16,669 |   |                                             | $ | 2,322  |                                             |  | $ | 1,499                                    |   |  | $ | 10,860 |  
|                           |  |                                          |        |   |                                             |   |        |                                             |  |   |                                          |   |  |   |        |  



F-34



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



A reconciliation of the federal statutory income tax rate to the Companys effective tax
rate is as follows for the periods presented:



|                                                |  |                                          |      |    |                                             |  |      |                                             |  |  |                                          |    |  |  |      |  
|----------------------------------------------- |  | ---------------------------------------- | ---- | -- | ------------------------------------------- |  | ---- | ------------------------------------------- |  |  | ---------------------------------------- | -- |  |  | ---- | -
|                                                |  | Successor                                |      |    | Predecessor                                 | 
|                                                |  | For the FiscalYear EndedJanuary 28, 2017 |      |    | For the PeriodMay 8, 2015 toJanuary 30,2016 |  |      | For the PeriodFebruary 1,2015 to May 7,2015 |  |  | For the FiscalYear EndedJanuary 31, 2015 |   
|Federal statutory income tax rate               |  |                                          | 35.0 | %  |                                             |  | 35.0 | %                                           |  |  | 35.0                                     | %  |  |  | 35.0 | %
|State income taxes, net of federal tax effect   |  |                                          | 4.6  | %  |                                             |  | 0.9  | %                                           |  |  | (39.9                                    | )% |  |  | 7.6  | %
|Acquisition-related costs                       |  |                                          | 3.5  | %  |                                             |  |     |                                             |  |  | (344.5                                   | )% |  |  |     |  
|Nondeductible equity-based compensation expense |  |                                          | 0.5  | %  |                                             |  | 0.9  | %                                           |  |  | (38.3                                    | )% |  |  | 8.5  | %
|Other                                           |  |                                          | (2.7 | )% |                                             |  | (1.8 | )%                                          |  |  | 14.8                                     | %  |  |  | 0.2  | %
|                                                |  |                                          |      |    |                                             |  |      |                                             |  |  |                                          |    |  |  |      |  
|Effective tax rate                              |  |                                          | 40.9 | %  |                                             |  | 35.0 | %                                           |  |  | (372.9                                   | )% |  |  | 51.3 | %
|                                                |  |                                          |      |    |                                             |  |      |                                             |  |  |                                          |    |  |  |      |  

The effective tax rate in the 2015 Predecessor period reflects transaction costs related to the Acquisition,
which were not deductible for tax purposes.

The components of deferred tax assets (liabilities) were as follows (in thousands):



|                               |  |                             |         |   |                             |   |         |  
|------------------------------ |  | --------------------------- | ------- | - | --------------------------- | - | ------- | -
|                               |  | January 28, 2017(Successor) |         |   | January 30, 2016(Successor) |  
|Deferred tax assets            |  |                             |         |   |                             |   |         |  
|Net credit carry forwards      |  | $                           |        |   |                             | $ | 12      |  
|Gift card asset                |  |                             |        |   |                             |   | 40      |  
|Deferred revenue               |  |                             | 311     |   |                             |   | 130     |  
|Accrued expenses               |  |                             | 6,612   |   |                             |   | 3,370   |  
|                               |  |                             |         |   |                             |   |         |  
|Total deferred tax assets      |  |                             | 6,923   |   |                             |   | 3,552   |  
|                               |  |                             |         |   |                             |   |         |  
|Deferred tax liabilities       |  |                             |         |   |                             |   |         |  
|Inventory                      |  |                             | (3,878  | ) |                             |   | (2,480  | )
|Fixed assets                   |  |                             | (18,270 | ) |                             |   | (13,571 | )
|Intangible assets              |  |                             | (58,372 | ) |                             |   | (65,573 | )
|Prepaid expenses               |  |                             | (1,153  | ) |                             |   | (765    | )
|                               |  |                             |         |   |                             |   |         |  
|Total deferred tax liabilities |  |                             | (81,673 | ) |                             |   | (82,389 | )
|                               |  |                             |         |   |                             |   |         |  
|Net deferred tax liabilities   |  | $                           | (74,750 | ) |                             | $ | (78,837 | )
|                               |  |                             |         |   |                             |   |         |  

The Company had no federal or state tax credit carryforwards as of January 28, 2017 and January 30,
2016 (Successor). As of January 28, 2017 and January 30, 2016 (Successor), the Company had no federal or state net operating loss carryforwards.

The Company has considered the need for a valuation allowance based on the more likely than not criterion. In determining the need for a
valuation allowance, management makes assumptions and applies judgment, including forecasting future earnings and considering the reversals of existing deferred tax liabilities. Based on this analysis, management determined that no valuation
allowance was required. The Company performed an analysis of its current and historical tax positions and determined that no material uncertain tax positions exist. Therefore, there is no liability for uncertain tax positions as of January 28,
2017 or January 30, 2016 (Successor).



F-35



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



J Jill Holdings, Inc. files a consolidated income tax return for Federal purposes as well as
in several state jurisdictions, which include subsidiary entities Jill Acquisition, LLC and J Jill Gift Card Solutions, Inc. The Company is allocated its share of the US Parent Companys Federal and combined state income tax accrual, or
benefit, in accordance with an intercompany tax allocation policy which is based on the separate return method. Due to the Parent Merger defined in Note 18, beginning with the fiscal year ending February 3, 2018, J Jill, Inc. will be the parent
entity required to file the consolidated income tax returns for Federal and several state jurisdictions.

The Companys income tax
returns are periodically examined by the Internal Revenue Service (the IRS). The IRS recently completed an examination of the fiscal year 2013 tax return without adjustment. For federal and state income tax purposes, the Companys
tax years remain open under statue from 2013 to the present.

15. Earnings Per Share

Successor

In conjunction with the
Acquisition (see Note 4), the holder of the Preferred Capital received a return of their original investment of $72.8 million and the Commodities Purchase Agreement was terminated. In addition, the capital relating to the 100 Class A Units
and the 3,927,601.3 Class B Units was returned to the holders and these units were no longer outstanding subsequent to the May 8, 2015 Acquisition.

On February 24, 2017, the Company converted from a Delaware limited liability company named Jill Intermediate LLC into a Delaware
corporation named J.Jill, Inc. In conjunction with the conversion, all of the outstanding equity interests converted into 43,747,944 shares of common stock. Accordingly, all share and per share amounts for all periods presented in the
accompanying financial statements and notes thereto have been adjusted retroactively, where required, to reflect this conversion.

The
following table summarizes the computation of basic and diluted net income (loss) per common unit for the 2016, 2015 Successor, 2015 Predecessor and 2014 periods (in thousands, except share and per share data):



|                                                                                           |  |                                          |            |  |                                             |   |            |                                             |  |   |                                          |   |  |   |            | 
|------------------------------------------------------------------------------------------ |  | ---------------------------------------- | ---------- |  | ------------------------------------------- | - | ---------- | ------------------------------------------- |  | - | ---------------------------------------- | - |  | - | ---------- | 
|                                                                                           |  | Successor                                |            |  | Predecessor                                 |  
|                                                                                           |  | For the FiscalYear EndedJanuary 28, 2017 |            |  | For the PeriodMay 8, 2015 toJanuary 30,2016 |   |            | For the PeriodFebruary 1,2015 to May 7,2015 |  |   | For the FiscalYear EndedJanuary 31, 2015 |  
|Numerator                                                                                  |  |                                          |            |  |                                             |   |            |                                             |  |   |                                          |   |  |   |            | 
|Net income (loss) per common share attributable to common shareholders:                    |  | $                                        | 24,075     |  |                                             | $ | 4,306      |                                             |  | $ | (1,901                                   | ) |  | $ | 10,296     | 
|Denominator                                                                                |  |                                          |            |  |                                             |   |            |                                             |  |   |                                          |   |  |   |            | 
|Net income (loss) per common share attributable to common shareholders, basic and
diluted: |  |                                          | 43,747,944 |  |                                             |   | 43,747,944 |                                             |  |   | 43,747,944                               |   |  |   | 43,747,944 | 
|Weighted average number of common share outstanding, basic and diluted:                    |  | $                                        | 0.55       |  |                                             | $ | 0.10       |                                             |  | $ | (0.04                                    | ) |  | $ | 0.24       | 
|                                                                                           |  |                                          |            |  |                                             |   |            |                                             |  |   |                                          |   |  |   |            | 

Predecessor

Given the liquidation preferences and distribution terms as described in Note 13, the Preferred Capital, Class A Units and Class B Units
have been excluded from the calculation of earnings per unit as any non-



F-36



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



liquidating distributions to each of these equity holders were limited to each equity holders return of capital. During the 2015 Predecessor and 2014 there were no non-liquidating
distributions approved by the Predecessors board of managers.

16. Equity-Based Compensation

Successor Plan

On May 8,
2015, Topco established an Incentive Equity Plan (the Plan), which allows Topco to grant Topco Class A Common Interests (Common Interests) to certain directors, senior executives and key employees of the Company. The
Plan is administered by Topcos board of directors, along with input from the Companys Chief Executive Officer. Grant date fair value, vesting and any other restrictions are determined at the discretion of Topcos board of directors.

The Plan allows Topco to grant up to 32,683,677 of its Class A Common Interests. As of January 28, 2017 (Successor), there
were an aggregate of 10,378,950 Common Interests authorized and available for future issuance. Topco did not grant any Common Interests to nonemployees.

Common Interests participate in distributions from Topco proportionate to their ownership, pursuant first to the full satisfaction and
repayment of the unreturned capital of the preferred interests of Topco and then to the achievement of a predefined Profits Interest Threshold (PIT), as stated in each grant agreement. The preferred interests and the PITs are considered
when determining the fair value of each grant.

Common Interests granted to employees of the Company are classified as equity awards and
are generally subject to a five year vesting period, with either a monthly or annual cliff vest. The Plan also contains a fair value repurchase feature, allowing Topco to repurchase vested Common Interests upon termination of employment. The Common
Interests contain provisions for accelerated vesting upon an approved sale of the Partnership or the termination of employment. If termination of employment is without cause, as defined in the Grant Agreement, all then-unvested units are forfeited
and vested interests are subject to repurchase. If termination of employment is for cause, as defined in the Grant Agreement, all vested and unvested units will be forfeited. Topco repurchased 234,652 units during 2016 and 1,122,978 units were
forfeited during the same period. Vested Common Interests that are repurchased or forfeited due to termination will be available for future issuance. As of January 28, 2017 (Successor), Topco does not expect to repurchase Common Interests.

The Company historically has been a private company and lacks certain company-specific historical and implied volatility information.
Therefore, it estimates its expected share volatility based on the historical volatility of a publicly traded group of peer companies. The expected term of the Companys Common Interests is estimated based on managements estimate of time
until a potential liquidity event. The risk-free rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend
yield is based on the fact that the Company has never paid cash dividends, and as of January 28, 2017 (Successor) did not anticipate paying any cash dividends to Common Interest holders in the foreseeable future.



F-37



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The following assumptions were used by management in its option pricing model to determine
the fair value of the Common Interests granted to directors, senior executives and key employees, and is presented on a weighted average basis:



|                         |  |                 |      |  
|------------------------ |  | --------------- | ---- | -
|                         |  | January 28,2017 |     
|Risk-free rate           |  |                 | 0.68 | %
|Expected term (in years) |  |                 | 0.6  |  
|Expected volatility      |  |                 | 35   | %
|Expected dividend yield  |  |                 | 0.0  | %

The following table summarizes Common Interests activity during 2016 and the 2015 Successor period:



|                                                           |  |                |            |   |                                    |   |      | 
|---------------------------------------------------------- |  | -------------- | ---------- | - | ---------------------------------- | - | ---- | 
|                                                           |  | Number ofUnits |            |   | WeightedAverageGrantDate FairValue |  
|Units outstanding at May 8, 2015 (Successor)               |  |                |           |   |                                    | $ |     | 
|Granted                                                    |  |                | 20,535,403 |   |                                    |   | 0.07 | 
|Vested                                                     |  |                | (2,402,837 | ) |                                    |   | 0.07 | 
|Forfeited                                                  |  |                |           |   |                                    |   |     | 
|                                                           |  |                |            |   |                                    |   |      | 
|Unvested units outstanding at January 30, 2016 (Successor) |  |                | 18,132,566 |   |                                    |   | 0.07 | 
|Granted                                                    |  |                | 3,126,954  |   |                                    |   | 0.24 | 
|Vested                                                     |  |                | (4,056,798 | ) |                                    |   | 0.07 | 
|Forfeited                                                  |  |                | (1,122,978 | ) |                                    |   | 0.07 | 
|                                                           |  |                |            |   |                                    |   |      | 
|Unvested units outstanding at January 28, 2017 (Successor) |  |                | 16,079,744 |   |                                    | $ | 0.10 | 
|                                                           |  |                |            |   |                                    |   |      | 

The aggregate intrinsic value of Common Interests is calculated as the difference between the price paid, if
any, of the Common Interests and its fair value. The aggregate intrinsic value of Common Interests that vested during 2016 was $8.2 million. Equity-based compensation expense of $0.6 million and $0.2 million was recorded as a selling, general
and administrative expense in the consolidated statement of operations and comprehensive income (loss) during 2016 and the 2015 Successor period, respectively. As of January 28, 2017 (Successor), there was $1.5 million of total
unrecognized compensation expense related to unvested Common Interests, which is expected to be recognized over a weighted average service period of 3.5 years.

Predecessor Plan

In conjunction
with the Acquisition (see Note 4), the equity-based compensation plans that were in existence in the Predecessor periods, as further discussed below, were settled and no longer outstanding subsequent to May 8, 2015.

On March 30, 2012, JJIP, a Limited Partnership (the Partnership), was formed by the then current owners of the Company and
held a portion of the outstanding common units of the Company. A Management Incentive Unit equity program (the Predecessor Plan) was established by JJIP to provide the opportunity for key employees of the Company to participate in the
appreciation of the business.



F-38



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The Predecessor Plan allowed Management Incentive Units (MIUs) to be granted to
employees of the Company at the discretion of JJIPs board of managers, not to exceed a maximum of 105,000 outstanding at any given time. The MIUs entitled the employees to an interest in JJIP upon the vesting of the MIU. When distributions are
made by the Company to JJIP, a holder of common units in the Predecessor periods, JJIPs board of managers would determine the allocation of that distribution to the JJIP interest holders. As of January 31, 2015 (Predecessor), there were
an aggregate 14,006 MIUs authorized and available for future issuance.

The vesting terms of MIUs granted by JJIP to employees of the
Company were determined on a grant-by-grant basis, according to the terms set forth by JJIPs board of managers. Half of the MIUs were granted as time-based vesting awards with the remaining half granted as performance-based vesting awards.
MIUs granted with time-based vesting features generally vested over a four year vesting period, with 25% of the MIUs cliff vesting at the later of one year from the date of employment with the Company (First Vesting Date), but not to
exceed one year from the date of grant. The remaining 75% of the Units vested quarterly over a three year period, beginning on the First Vesting Date. The MIUs contain provisions for accelerated vesting upon an approved sale of the Partnership
or forfeiture of unvested MIUs or both vested and unvested MIUs in the event of termination of employment from the Company without cause or with cause, respectively.

MIUs with a performance-based vesting feature were determined to vest upon the achievement of a specified Threshold Return, as defined by the
Plan. The Company reviewed the likelihood of achieving the Threshold Return at the end of each reporting period. During the 2014 and 2015 Predecessor periods, the Company determined that the likelihood of achieving the Threshold Return was not
probable, and therefore no compensation expense was recognized related to the MIUs with performance-based vesting features. As of January 31, 2015 (Predecessor), there were 45,450 performance-based vesting units outstanding and unvested.

The MIUs also contained a repurchase feature, whereby upon termination, JJIP had the right to purchase from former employees any or all
of the vested MIUs for cash. The amount of consideration provided by JJIP was based on a stated formula, per the terms of the Plan, which prevented employees from being exposed to all of the risks and rewards of owning the MIUs. Based on the
repurchase feature of the MIUs, the Company determined that the MIUs were liability classified awards.

Although the MIUs were granted by
JJIP, which had an economic interest in the Predecessor entity, the services provided were for the benefit of J.Jill. As a result, the corresponding compensation expense was recognized in the consolidated statement of operations and comprehensive
income (loss) of the Company with a corresponding capital contribution from JJIP.

The Company accounted for compensation expense related
to liability classified awards using the intrinsic value method, as permitted by ASC 718 for nonpublic entities, and recorded changes in the value of these awards as compensation expense at each reporting period. To determine the intrinsic value,
the Predecessor calculated the difference between the exercise price, if any, of the MIU compared to its estimated repurchase price at each reporting period. The repurchase price of the MIUs was determined using an estimate of the excess of the
Predecessors EBITDA, multiplied by a fixed multiple, over a predetermined dollar value threshold. The difference between these two amounts, if positive, was then divided by the total number of MIUs outstanding. As a result of the pending
Acquisition, at January 31, 2015, the repurchase calculation was amended to reflect the anticipated transaction value.



F-39



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



As of January 31, 2015 (Predecessor), 36,113 time vesting units were vested and 9,431
time vesting units were unvested. The following table summarizes the MIU activity of the time vesting units during the 2014 and 2015 Predecessor periods:



|                                             |  |                |         |  
|-------------------------------------------- |  | -------------- | ------- | -
|                                             |  | Numberof Units |        
|Unvested units outstanding, February 1, 2014 |  |                | 17,197  |  
|Granted                                      |  |                | 3,750   |  
|Vested                                       |  |                | (11,516 | )
|Forfeited                                    |  |                |        |  
|                                             |  |                |         |  
|Unvested units outstanding, January 31, 2015 |  |                | 9,431   |  
|Granted                                      |  |                |        |  
|Vested                                       |  |                | (3,403  | )
|Forfeited                                    |  |                |        |  
|                                             |  |                |         |  
|Unvested units outstanding, May 7, 2015      |  |                | 6,028   |  
|                                             |  |                |         |  

The aggregate intrinsic value of MIUs as of January 31, 2015 that vested during the period was $2.2
million, respectively. The aggregate intrinsic value of the unvested time and performance units was $9.9 million as of January 31, 2015. Compensation expense of $1.9 million, $5.2 million and $0.4 million was recorded in selling, general
and administrative expenses in the consolidated statements of operations and comprehensive income (loss) for the 2013, 2014 and 2015 Predecessor periods, respectively. The intrinsic value of MIUs was $7.3 million as of January 31, 2015
(Predecessor).

In conjunction with the Acquisition (see Note 4), the unvested time-based MIUs were automatically vested as a result of
the change in control and all of the issued and outstanding vested time-based MIUs were settled. All of the performance-based awards issued and outstanding achieved their specified Threshold Return upon the Acquisition and were also settled.
The acceleration of the vesting conditions due to a change in control resulted in compensation expense of approximately $7.4 million, which was not reflected in either the Predecessor or Successor consolidated statements of operations and
comprehensive income (loss) periods, but instead are presented on the black line.

17. Related Party Transactions

As part of the Acquisition (see Note 4), TowerBrook, an affiliate of Topco, has performed and will continue to perform management support
advisory services, planning and finance services for the Company. Under the terms of the services agreement with TowerBrook, effective May 8, 2015, Holdings paid an upfront lump sum fee of $4.0 million. TowerBrook was also eligible to
earn a fee of up to 1% of the Transaction Value at completion of: (i) a sale of all or substantially all of the assets of the Company; or (ii) the sale of a majority of the outstanding voting equity interests of the Company or entity of
which the Company is a direct and wholly-owned subsidiary; or (iii) an underwritten public offering and sale of equity securities of the Company or any beneficiary affiliate (Exit). The Company also agreed to pay and reimburse
reasonable out of pocket expenses. The agreement term is continuous and terminates only upon a complete equity Exit by TowerBrook and its affiliates, mutual written consent, unilateral consent by TowerBrook, or by the Company upon a willful material
breach of the agreement that is not cured within 30 days of written notice.

For the 2016 period, the Company incurred out-of-pocket
expenses of $0.2 million in relation to the advisory services agreement described above. These expenses are included in operating expenses in the accompanying 2016 Successor consolidated statements of operations and comprehensive income
(loss). The Company also distributed $70.0 million to Topco in the 2016 Successor period to as a dividend.



F-40



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



The Company had a net receivable from related parties of $1.3 million recorded at
January 28, 2017. This was made up of $1.6 million receivable from Topco which consisted of $1.9 million in cash paid directly by investors to Topco for an ownership stake in J.Jill, Inc. which was partially offset by $0.3 million related
to repurchased MIUs. The Topco receivable was further offset by a $0.3 million payable to Holdings in relation to tax benefits claimed by the Company for transaction costs paid by Holdings in relation to the Acquisition.

For the 2015 Successor period, the Company incurred out-of-pocket expenses of $0.3 million in relation to these services, which are included
in operating expenses in the accompanying Successor consolidated statements of operations and comprehensive income (loss). Amounts payable to Topco equity holders were $0.1 million and were included in accrued expenses in the accompanying
January 30, 2016 (Successor) consolidated balance sheet. The Company also distributed $8.6 million to Topco in the Successor period to reimburse them for expenses associated with the Acquisition.

Prior to the May 8, 2015 Acquisition, the Companys equity holders (the Advisors) performed certain management support,
advisory services, planning and finance services for the Company. Under the terms of the services agreement entered into in 2011, the Company paid an annual advisory fee of $1.0 million, payable in four quarterly installments, and subject to an
adjustment increase in the event of an acquisition. The agreement term was continuous and could be terminated only upon a public offering, a change of control to a new equity investor, gross negligence or willful breach by the Advisors, mutual
agreement, or dissolution, liquidation, sale or disposal of the Companys assets.

For the 2015 Predecessor and 2014 periods, the
Company incurred management fees and out of pocket expenses of $1.0 million and $0.3 million, respectively, which are included in operating expenses in the accompanying Predecessor consolidated statements of operations and comprehensive income
(loss). Amounts payable to the Companys equity holders were $0.3 million and are included in accrued expenses in the accompanying January 31, 2015 (Predecessor) consolidated balance sheet.

In connection with a refinancing, the Company entered into a subordinated, unsecured $30.0 million debt facility with an affiliate of a
minority equity holder of the Company. A total amount of $40.9 million was paid in connection with the Acquisition, including principal and accrued interest, to settle all remaining obligations under this credit facility.

18. Subsequent Events

On
February 24, 2017, the Company completed a conversion from a Delaware limited liability company named Jill Intermediate LLC into a Delaware corporation and changed its name to J.Jill, Inc. In conjunction with the conversion, all of the
outstanding equity of Jill Intermediate LLC converted into shares of common stock of J.Jill, Inc. Accordingly, all historical earnings per share amounts presented in the accompanying consolidated statements of operations and comprehensive income
(loss) and the related notes to the consolidated financial statements have been adjusted retroactively to reflect the Companys conversion from a limited liability company to a corporation.

Following the Companys conversion from a limited liability company to a corporation, JJill Holdings merged with and into J.Jill, Inc. on
February 24, 2017, with J.Jill, Inc. continuing as the surviving entity (the Parent Merger). The Parent Merger is a reorganization of entities under common control and, in accordance with ASC 805, the Companys financial
statements will be retroactively restated to reflect the Parent Merger as of the earliest date that common control existed in the period in which the Parent Merger occurred. JJill Holdings did not have operations of its own, except for buyer
transaction costs of $8,560 incurred to execute the Acquisition. The restated combined results of operations of the Company and JJill Holdings, will be adjusted



F-41



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



retroactively by $8,560, and will result in the Companys net income (loss) for the period from May 8, 2015 to January 30, 2016 (Successor) to be ($4,254) and net income (loss) per
share attributable to common stockholders to be ($0.10).

On March 9, 2017, J.Jill, Inc. completed an initial public offering
(IPO). An existing stockholder of the Company sold 11,666,667 shares of the Companys common stock at a share price of $13.00 per share. The underwriters in the IPO also exercised an option to purchase 865,000 shares of common stock
at the IPO price. All proceeds of the IPO, net of the underwriters discount, were distributed to the selling stockholder.

On
March 14, 2017, J. Jill, Inc. registered 2,237,303 shares of common stock by filing a registration statement on Form S-8. These shares will be issuable to certain employees and directors under the J.Jill, Inc. 2017 Omnibus Equity Incentive Plan
(the 2017 Plan). The 2017 Plan was effective as of March 9, 2017.

The Company has evaluated subsequent events from the
balance sheet date through April 28, 2017, the date at which the consolidated financial statements were available to be issued and determined that there are no other material items to disclose.

19. Quarterly Financial Data (unaudited)

The following table sets forth our historical consolidated statements of income for each of the eight fiscal quarters through the year ended
January 28, 2017. This unaudited quarterly information has been prepared on the same basis as our annual audited consolidated financial statements, consisting of only normal recurring adjustments that we consider necessary to fairly present the
financial information for the fiscal quarters presented below.



|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|----------------------------------------------------------------------- |  | ------------------------------ | ---------- |  | ----------------------------------- | - | ---------- | -------------------------------------- |  | - | -------------------- | - |  | --------------- | ---------- |  | ------------- | - | ---------- | ------------ |  | - | --------------- |  |  | --------------- | ---------- |  |  | - | ---------- |  |  | - | ---------- | 
|                                                                        |  | Predecessor                    |            |  | Successor                           |  
|                                                                        |  | Fiscal Year 2015               |            |  | Fiscal Year 2016                    |  
|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   | Thirteen weeks ended |  
|                                                                        |  | Thirteenweeks endedMay 2, 2015 |            |  | Period fromMay 3, 2015to May 7,2015 |   |            | Period fromMay 8, 2015to August 1,2015 |  |   | October 31,2015      |   |  | January 30,2016 |            |  | April 30,2016 |   |            | July 30,2016 |  |   | October 29,2016 |  |  | January 28,2017 |           
|(in thousands, unaudited)                                               |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |           
|Net sales                                                               |  | $                              | 132,552    |  |                                     | $ | 9,369      |                                        |  | $ | 132,112              |   |  | $               | 142,629    |  |               | $ | 145,353    |              |  | $ | 147,665         |  |  | $               | 165,035    |  |  | $ | 159,439    |  |  | $ | 166,917    | 
|Costs of goods sold                                                     |  |                                | 42,156     |  |                                     |   | 2,076      |                                        |  |   | 54,468               |   |  |                 | 46,717     |  |               |   | 53,906     |              |  |   | 46,159          |  |  |                 | 52,179     |  |  |   | 51,335     |  |  |   | 61,444     | 
|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|Gross profit                                                            |  |                                | 90,396     |  |                                     |   | 7,293      |                                        |  |   | 77,644               |   |  |                 | 95,912     |  |               |   | 91,447     |              |  |   | 101,506         |  |  |                 | 112,856    |  |  |   | 108,104    |  |  |   | 105,473    | 
|Selling, general and administrative expenses                            |  |                                | 74,946     |  |                                     |   | 5,205      |                                        |  |   | 75,276               |   |  |                 | 85,960     |  |               |   | 85,246     |              |  |   | 87,072          |  |  |                 | 94,173     |  |  |   | 92,637     |  |  |   | 94,643     | 
|Acquisition-related expenses                                            |  |                                |           |  |                                     |   | 13,341     |                                        |  |   |                      |   |  |                 |           |  |               |   |           |              |  |   |                |  |  |                 |           |  |  |   |           |  |  |   |           | 
|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|Operating income                                                        |  |                                | 15,450     |  |                                     |   | (11,253    | )                                      |  |   | 2,368                |   |  |                 | 9,952      |  |               |   | 6,201      |              |  |   | 14,434          |  |  |                 | 18,683     |  |  |   | 15,467     |  |  |   | 10,830     | 
|Interest expense                                                        |  |                                | 4,335      |  |                                     |   | 264        |                                        |  |   | 3,902                |   |  |                 | 4,020      |  |               |   | 3,971      |              |  |   | 4,112           |  |  |                 | 4,674      |  |  |   | 4,844      |  |  |   | 5,040      | 
|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|Income (loss) before provision (benefit) for income taxes               |  |                                | 11,115     |  |                                     |   | (11,517    | )                                      |  |   | (1,534               | ) |  |                 | 5,932      |  |               |   | 2,230      |              |  |   | 10,322          |  |  |                 | 14,009     |  |  |   | 10,623     |  |  |   | 5,790      | 
|Provision (benefit) for income taxes                                    |  |                                | 790        |  |                                     |   | 709        |                                        |  |   | (538                 | ) |  |                 | 2,079      |  |               |   | 781        |              |  |   | 4,249           |  |  |                 | 5,860      |  |  |   | 2,815      |  |  |   | 3,745      | 
|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|Net income (loss)                                                       |  | $                              | 10,325     |  |                                     | $ | (12,226    | )                                      |  | $ | (996                 | ) |  | $               | 3,853      |  |               | $ | 1,449      |              |  | $ | 6,073           |  |  | $               | 8,149      |  |  | $ | 7,808      |  |  | $ | 2,045      | 
|                                                                        |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|                                                                        |  |                                |            |  |                                     |   |            |                                        | 
|Net income (loss) per common share attributable to common shareholders: |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|Basic and diluted                                                       |  | $                              | 0.24       |  |                                     | $ | (0.28      | )                                      |  | $ | (0.02                | ) |  | $               | 0.09       |  |               | $ | 0.03       |              |  | $ | 0.14            |  |  | $               | 0.19       |  |  | $ | 0.18       |  |  | $ | 0.05       | 
|Weighted average number of common shares outstanding:                   |  |                                |            |  |                                     |   |            |                                        |  |   |                      |   |  |                 |            |  |               |   |            |              |  |   |                 |  |  |                 |            |  |  |   |            |  |  |   |            | 
|Basic and diluted                                                       |  |                                | 43,747,944 |  |                                     |   | 43,747,944 |                                        |  |   | 43,747,944           |   |  |                 | 43,747,944 |  |               |   | 43,747,944 |              |  |   | 43,747,944      |  |  |                 | 43,747,944 |  |  |   | 43,747,944 |  |  |   | 43,747,944 | 



F-42



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



20. Condensed Financial Information of Registrant

J.Jill, Inc.

(PARENT
COMPANY ONLY)

CONDENSED BALANCE SHEETS

(in thousands, except unit data)



|                                                                                                                                                  |  |                             |         |  |                             |   |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------- | ------- |  | --------------------------- | - | ------- | 
|                                                                                                                                                  |  | January 28, 2017(Successor) |         |  | January 30, 2016(Successor) |  
|Assets                                                                                                                                            |  |                             |         |  |                             |   |         | 
|Investment in subsidiaries                                                                                                                        |  | $                           | 120,965 |  |                             | $ | 166,571 | 
|                                                                                                                                                  |  |                             |         |  |                             |   |         | 
|Members Equity                                                                                                                                   |  |                             |         |  |                             |   |         | 
|Common units, zero par value, 1,000,000 units authorized, issued and outstanding at
January 28, 2017 (Successor) and January 30, 2016 (Successor) |  |                             |        |  |                             |   |        | 
|Contributed capital                                                                                                                               |  |                             | 107,878 |  |                             |   | 162,265 | 
|Accumulated earnings                                                                                                                              |  |                             | 13,087  |  |                             |   | 4,306   | 
|                                                                                                                                                  |  |                             |         |  |                             |   |         | 
|Total members equity                                                                                                                             |  | $                           | 120,965 |  |                             | $ | 166,571 | 
|                                                                                                                                                  |  |                             |         |  |                             |   |         | 

The accompanying notes are an integral part of these condensed financial statements

J.Jill, Inc.

(PARENT
COMPANY ONLY)

CONDENSED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)



|                                                                        |  |                                         |            |  |                                                 |   |            |             |  |  |                                                  |  |  |                                         |            |   |  |   |            | 
|----------------------------------------------------------------------- |  | --------------------------------------- | ---------- |  | ----------------------------------------------- | - | ---------- | ----------- |  |  | ------------------------------------------------ |  |  | --------------------------------------- | ---------- | - |  | - | ---------- | 
|                                                                        |  | Successor                               |            |  |                                                 |   |            | Predecessor | 
|                                                                        |  | For the FiscalYear EndedJanuary 28,2017 |            |  | For the Periodfrom May 8,2015 toJanuary 30,2016 |   |            |             |  |  | For the Periodfrom February 1,2015 to May 7,2015 |  |  | For the FiscalYear EndedJanuary 31,2015 |           
|Equity in net income (loss) of subsidiaries                             |  | $                                       | 24,075     |  |                                                 | $ | 4,306      |             |  |  |                                                  |  |  | $                                       | (1,901     | ) |  | $ | 10,296     | 
|                                                                        |  |                                         |            |  |                                                 |   |            |             |  |  |                                                  |  |  |                                         |            |   |  |   |            | 
|Net income (loss) and total comprehensive income (loss)                 |  | $                                       | 24,075     |  |                                                 | $ | 4,306      |             |  |  |                                                  |  |  | $                                       | (1,901     | ) |  | $ | 10,296     | 
|                                                                        |  |                                         |            |  |                                                 |   |            |             |  |  |                                                  |  |  |                                         |            |   |  |   |            | 
|Net income (loss) per common share attributable to common shareholders: |  |                                         |            |  |                                                 |   |            |             |  |  |                                                  |  |  |                                         |            |   |  |   |            | 
|Basic and diluted                                                       |  | $                                       | 0.55       |  |                                                 | $ | 0.10       |             |  |  |                                                  |  |  | $                                       | (0.04      | ) |  | $ | 0.24       | 
|Weighted average number of common shares outstanding:                   |  |                                         |            |  |                                                 |   |            |             |  |  |                                                  |  |  |                                         |            |   |  |   |            | 
|Basic and diluted                                                       |  |                                         | 43,747,944 |  |                                                 |   | 43,747,944 |             |  |  |                                                  |  |  |                                         | 43,747,944 |   |  |   | 43,747,944 | 

The accompanying note is an integral part of these condensed financial statements

A statement of cash flows has not been presented as J.Jill, Inc. parent company did not have any cash as of, or for the year ended
January 28, 2017, the period from May 8, 2015 to January 30, 2016, the period from February 1, 2015 to May 7, 2015 or the year ended January 31, 2015.



F-43



---

##### Table of Contents

J.Jill, Inc.

Notes to Consolidated Financial Statements



Note to Condensed Financial Statements of Registrant (Parent Company Only)

Basis of Presentation

These condensed
parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of J.Jill, Inc. (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed
25% of the consolidated net assets of the company. The ability of J.Jill, Inc.s operating subsidiaries to pay dividends may be restricted due to the terms of the subsidiaries term loan and asset-based revolving credit agreements, as
defined in Note 9 to the audited consolidated financial statements.

On February 24, 2017, Jill Intermediate LLC completed a
conversion from a Delaware limited liability company into a Delaware corporation and changed its name to J.Jill, Inc. In conjunction with the conversion, all of the outstanding equity of Jill Intermediate LLC converted into shares of common stock of
J.Jill, Inc. Accordingly, all historical earnings per share amounts presented in the condensed parent company statements of operations and comprehensive income (loss) have been adjusted retroactively to reflect the Corporate Conversion.

These condensed parent company financial statements have been prepared using the same accounting principles and policies described in the
notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. These condensed financial statements should be read in conjunction with the consolidated
financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K.



F-44



---

##### Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly
caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                  |  |              |  |                                                
|----------------- |  | ------------ |  | -----------------------------------------------
|                  |  | J.Jill, Inc.
|                  |  |             
|Date: May 5, 2017 |  | By:          |  | /s/ Paula Bennett                              
|                  |  |              |  | Paula Bennett                                  
|                  |  |              |  | President, Chief Executive Officer and Director



---

##### Table of Contents

Exhibit Index



|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3.1**         |  | Certificate of Incorporation of J.Jill, Inc.                                                                                                                                                                                                                                                                                                                                                                                                         
|              | 
|3.2**         |  | Bylaws of J.Jill, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                               
|              | 
|10.1          |  | Form of Indemnification Agreement (incorporated by reference from Exhibit 10.1 to Amendment No. 1 to the Companys Registration Statement on Form S-1, dated February 27, 2017 (File
No. 333-215993)).                                                                                                                                                                                                                                               
|              | 
|10.2**        |  | Registration Rights Agreement, dated as of March 14, 2017.                                                                                                                                                                                                                                                                                                                                                                                           
|              | 
|10.3**       |  | J.Jill, Inc. 2017 Omnibus Equity Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                     
|              | 
|10.4          |  | Term Loan Credit Agreement, dated as of May 8, 2015, among Jill Holdings LLC, Jill Acquisition LLC, the various lenders party thereto from time to time and Jefferies Finance LLC, as the administrative agent (incorporated by
reference from Exhibit 10.4 to the Companys Registration Statement on Form S-1, dated February 10, 2017 (File No. 333-215993)).                                                                                     
|              | 
|10.5          |  | Amendment No. 1 to Term Loan Credit Agreement, dated as of May 27, 2016, among Jill Acquisition LLC, Jill Intermediate LLC, the lenders party thereto and Jefferies LCC as the administrative agent (incorporated by reference from
Exhibit 10.5 to the Companys Registration Statement on Form S-1, dated February 10, 2017 (File No. 333-215993)).                                                                                                
|              | 
|10.6          |  | ABL Credit Agreement, dated as of May 8, 2015, among Jill Holdings LLC, Jill Acquisition LLC, certain subsidiaries of Jill Acquisition LLC from time to time party thereto, the lenders party thereto and CIT Finance LLC, as the
administrative agent and collateral agent (incorporated by reference from Exhibit 10.6 to the Companys Registration Statement on Form S-1, dated February 10, 2017 (File No. 333-215993)).                        
|              | 
|10.7          |  | Amendment No. 1 to ABL Credit Agreement, dated as of May 27, 2016, among Jill Acquisition LLC, Jill Intermediate LLC, certain subsidiaries of Jill Acquisition LLC from time to time party thereto, the lenders party thereto and CIT
Finance LLC, as the administrative agent and collateral agent (incorporated by reference from Exhibit 10.7 to the Companys Registration Statement on Form S-1, dated February 10, 2017 (File No. 333-215993)).
|              | 
|10.8          |  | Services Agreement, dated as of May 8, 2015, by and between Jill Acquisition LLC and TowerBrook Capital Partners L.P (incorporated by reference from Exhibit 10.8 to the Companys Registration Statement on Form S-1, dated
February 10, 2017 (File No. 333-215993)).                                                                                                                                                                               
|              | 
|10.9**       |  | Second Amended and Restated Employment Agreement, dated as of March 14, 2017, by and between Paula Bennett, J.Jill, Inc., JJill Topco Holdings, LP, Jill Acquisition LLC, and certain other parties thereto.                                                                                                                                                                                                                                         
|              | 
|10.10        |  | Amended and Restated Employment Agreement, dated as of as May 22, 2015, by and between David Biese and Jill Acquisition LLC (incorporated by reference from Exhibit 10.10 to Amendment No. 1 to the Companys Registration
Statement on Form S-1, dated February 27, 2017 (File No. 333-215993)).                                                                                                                                                    
|              | 
|10.11        |  | Amended and Restated Employment Agreement, dated as of May 22, 2015, by and between Joann Fielder and Jill Acquisition LLC and Amendment No. 1 thereto, dated as of July 27, 2015 (incorporated by reference from Exhibit 10.11 to
Amendment No. 1 to the Companys Registration Statement on Form S-1, dated February 27, 2017 (File No. 333-215993)).                                                                                              
|              | 
|10.12         |  | Lease Agreement, dated as of September 30, 2010, by and between Cole JJ Tilton NH, LLC and Jill Acquisition LLC (incorporated by reference from Exhibit 10.12 to the Companys Registration Statement on Form S-1, dated February
10, 2017 (File No. 333-215993)).                                                                                                                                                                                   



---

##### Table of Contents

|              |  |                                                                                                                                                                                                                                                                                 
|------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Description                                                                                                                                                                                                                                                             
|10.13**       |  | Stockholders Agreement, dated as of March 14, 2017.                                                                                                                                                                                                                             
|              | 
|10.14        |  | Form of Stock Option Award Agreement under the J.Jill, Inc. 2017 Omnibus Equity Incentive Plan (incorporated by reference from Exhibit 10.14 to Amendment No. 1 to the Companys Registration Statement on Form S-1, dated February
27, 2017 (File No. 333-215993)).            
|              | 
|10.15        |  | Form of Restricted Stock Unit Award Agreement under the J.Jill, Inc. 2017 Omnibus Equity Incentive Plan (incorporated by reference from Exhibit 10.15 to Amendment No. 1 to the Companys Registration Statement on Form S-1, dated
February 27, 2017 (File No. 333-215993)).   
|              | 
|10.16         |  | Amended and Restated Agreement of Limited Partnership of JJill Topco Holdings, LP, dated as of May 8, 2015 (incorporated by reference from Exhibit 10.16 to Amendment No. 1 to the Companys Registration Statement on Form S-1,
dated February 27, 2017 (File No. 333-215993)).
|              | 
|10.17        |  | JJill Topco Holdings, LP Incentive Equity Plan (incorporated by reference from Exhibit 10.17 to Amendment No. 1 to the Companys Registration Statement on Form S-1, dated February 27, 2017 (File No. 333-215993)).                                                            
|              | 
|10.18        |  | Form of Grant Agreement under the JJill Topco Holdings, LP Incentive Equity Plan (incorporated by reference from Exhibit 10.18 to Amendment No. 1 to the Companys Registration Statement on Form S-1, dated February 27, 2017
(File No. 333-215993)).                          
|              | 
|21.1**        |  | Subsidiaries of J.Jill, Inc.                                                                                                                                                                                                                                                    
|              | 
|23.1*         |  | Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm.                                                                                                                                                                                           
|              | 
|31.1*         |  | Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                         
|              | 
|31.2*         |  | Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                         
|              | 
|32.1*         |  | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                          
|              | 
|32.2*         |  | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                          



|* | Filed herewith.
|- | ---------------

|** | Previously filed.
|-- | -----------------

| | Management contract or compensatory plan or arrangement.
|- | --------------------------------------------------------