J.C. Penney Co Inc is preparing to file for bankruptcy protection as soon as next week with plans to permanently close about a quarter of its roughly 850 stores, becoming the latest major U.S. retailer to succumb to fallout from the coronavirus outbreak, according to people familiar with the matter.
) is preparing to file for bankruptcy protection as soon as next week with plans to permanently close about a quarter of its roughly 850 stores, becoming the latest major U.S. retailer to succumb to fallout from the coronavirus outbreak, according to people familiar with the matter.
The Plano, Texas-based company, which employs nearly 85,000 people, is in discussions with creditors for a so-called debtor-in-possession loan to bolster its finances while it navigates bankruptcy proceedings, the sources said. The loan could total between $400 million and $500 million, some of the sources said.
Under one plan being discussed, J.C. Penney would emerge from bankruptcy as two separate companies, the sources said. One would own some of the company’s real estate and serve as a landlord to the other entity operating the retailer’s business, they said. Creditors, many of them Wall Street hedge funds, would control the businesses in exchange for forgiving debt, they said.
J.C. Penney Chief Executive Jill Soltau told customers in a Thursday email that stores have started to gradually reopen with precautions such as Plexiglass shields at registers and limited crowds. The e-commerce revolution that took hold in the 21st century eroded J.C. Penney’s business much as it did other traditional retailers’. The company now also faces fierce competition from discount chains including TJX Cos Inc’s Marshalls and T.J. Maxx chains.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
J.C. Penney to file for bankruptcy as soon as next week, sources sayJ.C. Penney Co Inc is preparing to file for bankruptcy protection as soon as next week with plans to permanently close about a quarter of its roughly 850 stores, becoming the latest major U.S. retailer to succumb to fallout from the coronavirus outbreak, according to people familiar with the matter.
Read more »
J.C. Penney to file for bankruptcy as soon as next week, sources sayJ.C. Penney Co Inc is preparing to file for bankruptcy protection as soon as next week with plans to permanently close about a quarter of its roughly 850 stores, becoming the latest major U.S. retailer to succumb to fallout from the coronavirus outbreak, according to people familiar with the matter.
Read more »
U.S. House Democrats to attempt passing next coronavirus bill soonU.S. House of Representatives Speaker Nancy Pelosi on Thursday laid out the broad outlines of the next massive coronavirus-response bill Democrats will seek, with possible votes as soon as next week.
Read more »
Coronavirus has rocked America’s economy — and it’s had a surprising effect on bankruptcy filingsNew data on April bankruptcy filings for both businesses and individuals comes a day after J.Crew filed for bankruptcy.
Read more »
As Neiman Marcus Files for Bankruptcy, the Retail World Wonders Who’s Next?Neiman Marcus filed for Chapter 11 bankruptcy protection, restructuring its debt in a bid to continue operations during the Covid-19 pandemic.
Read more »
Neiman Marcus Files for Bankruptcy, Plus More Retailers Facing Financial Stress amid CoronavirusThe coronavirus crisis is hitting the brick-and-mortar retail industry hard
Read more »