J.C. Penney to file for bankruptcy, close 200 stores
Don-Alvin Adegeest| Tuesday, May 12 2020
Department store chain J.C. Penney is expected to file for bankruptcy as early as this weekend, according to Reuters.
The troubled retailer is expected to close 200 of its 850 locations, and is the latest in a string of store groups and brands facing financial dire straits during the pandemic.
The filing will likely have been accelerated by the impact of Covid-19 and would come amid discussions with creditors over loans that would allow the Texas-based company to remain in business.
A series of failed repayments to its creditors sees the company with a 2.35 billion revolving credit facility. Its 386 million cash in hand is insufficient to cover its debts. Were J.C. Penney to file for Chapter 11 it could buy time to repay those debts, restructure its businesses and resolve some of its financial woes by closing unprofitable stores.
J.C. Penney currently employs some 85,000 employees.
Image via J.C. Penney Facebook