J.C. Penney files for bankruptcy as coronavirus pushes retailer over edge
J.C. Penney joins J. Crew and Neiman Marcus in the Chapter 11 heap
By James Leggate FOX Business
Retailer J.C. Penney filed for Chapter 11 bankruptcy protection after the coronavirus pandemic forced stores to shut, the company announced Friday evening, joining J. Crew and Neiman Marcus.
The stock has lost over 83 percent of its value in the last 12 months as business deteriorated even before the pandemic hit.
Penney’s had been making efforts to revive the business but the coronavirus “created unprecedented challenges,” CEO Jill Soltau said in a statement.
The Plano, Texas-based chain’s parent, J. C. Penney Company, said it had entered into a restructuring support agreement with the lenders that hold about 70 percent of its first lean debt. The deal includes terms for financial restructuring designed to cut several billion in debt.
An unspecified number of its stores will close in phases as it looks to shrink its footprint going ahead.
J.C. PENNEY STAVES OFF BANKRUPTCY
Earlier Friday, Penney made a $17 million payment to its lenders. The company had about $500 million in cash as of the bankruptcy filing and it has received commitments for $900 million in debtor- in-possession financing, including $450 million in new money, though the financing still requires court approval.
The restructuring agreement is also designed to help Penney navigate through the ongoing coronavirus pandemic, the company said. Penney will continue fulfilling online orders and offering contactless curbside pickup service at its open stores.
“As a result, the American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company,” Soltau said.
Many retailers have struggled as the coronavirus forced non- essential workers to stay home while others have thrived including Amazon and Walmart.
#1: NeoconsNailed To: BTP Holdings, All (#0)
Correction: as COMMUNIST CRACKDOWNS push retailers over edge.
Wherever y'all go today and this week, note this reality to ppl -- be polite but bold. There are numerous oppties. I've done this in at least 3 youtube comments the past few days, e.g.....
Ingraham: The masks are off
www.youtube.com/watch?v=2687MTU_uR4
NO, Laura, the virus has NOT "taken many lives" or "wrecked the economy." NO, beautiful one, THE COMMUNIST CRACKDOWNS did ALL of that!
Great presentation as usual! PLEASE KEEP STOMPING DUMMACRATS EVERY DAY!
Yeah -- offer positive reinforcement whenever possible. How things work ;)
NeoconsNailed posted on 2020-05-16 12:54:14 Reply Private Reply
#2: Dakmar To: BTP Holdings (#0)
Dakmar posted on 2020-05-16 13:22:51 Reply Private Reply
#3: Dakmar To: NeoconsNailed (#1)
JC Penney has been circling the drain for years. They opted to push LGBTQRTSUV crap about 15 years ago, choosing PC while full well knowing their core market was Midwestern upper working class types.
Dakmar posted on 2020-05-16 13:27:37 Reply Private Reply
#4: BTP Holdings To: Dakmar (#3)
Yuppies? That wouldn't surprise me in the least.
When they killed MLK, Jr in '68, my Mom was at the Montgomery Ward catalog pick up on near north side. On the way home she said those people came running out of those buildings.
The put a brick in the windshield and a bottle in the driver side window. She got a small cut on her pinkie.
She stopped to talk to a cop and he told her to go home and call the station. :-/
BTP Holdings posted on 2020-05-16 13:42:52 Reply Private Reply
#5: Dakmar To: BTP Holdings (#4)
LOL, no, yuppies are entry level upper management. Didn't they teach you this stuff at Wharton? :)
Dakmar posted on 2020-05-16 14:02:57 Reply Private Reply
#6: BTP Holdings To: Dakmar (#5)
My sister in Chicago told me the local liquor store sets up tables on the sidewalk during summer and serves drinks outside.
Now you tell me for one minute there are not a lot of Yuppies around that area? ;)
BTP Holdings posted on 2020-05-16 14:10:15 Reply Private Reply
#7: Dakmar To: BTP Holdings (#6)
Dakmar posted on 2020-05-16 14:13:24 Reply Private Reply
#8: BTP Holdings To: Dakmar (#7)
It is the middle class that has been decimated in Chicago.
The reasons for this are many, but the old Head Tax that Chicago put in was a burden and caused many larger companies to move to the suburbs. Aetna Plywood was one of those. My sister worked there as a Secretary and gal Friday. ;)
BTP Holdings posted on 2020-05-16 14:45:07 Reply Private Reply
#9: NeoconsNailed To: Dakmar (#3)
img.f ireden.net/co/image/1577/79/1577798202374.png
NeoconsNailed posted on 2020-05-16 20:53:54 Reply Private Reply