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article imageJ.C.Penny is the fourth major retailer hit by COVID-19 pandemic

By Karen Graham     May 16, 2020 in Business
Corpus Christi - J.C.Penny is the latest retail giant to see its downfall hastened by the coronavirus crisis. The 118-year-old company filed for Chapter 11 bankruptcy on Friday - even as it has been struggling to overcome a decade of business problems.
J.C. Penny operates nearly 850 stores and it has nearly 90,000 employees. The company said late Friday it had an agreement with most of its lenders on a turn-around plan that would allow the retailer to stay in business on a more financially stable basis, according to the Associated Press.
According to CNN Business, the company has received $450 million in financing to help it operate during the restructuring. As part of the restructuring, they'll be closing some of their stores. The number of stores and the closing dates will be announced soon.
"Until this pandemic struck, we had made significant progress rebuilding our company under our Plan for Renewal strategy -- and our efforts had already begun to pay off," said CEO Jill Soltau.
"Implementing this financial restructuring plan through a court-supervised process is the best path to ensure that JCPenney will build on its over 100-year history to serve our customers for decades to come."
On Saturday, J.C.Penny announced that it has received approvals from the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, for “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on Friday, May 15, 2020, The approval also allows the Company to access and use its approximately $500 million in cash collateral, reports Business Wire.
Soltau said, “We are pleased to have received approval of these motions, which will enable us to continue implementing our Plan for Renewal and operating our business to serve the needs of our loyal customers. We thank the Court for convening on a weekend to ensure that JCPenney can hit the ground running on Monday with approval of our First Day motions, and we are appreciative of the widespread support we have received from our asset-based lenders and first-lien lenders and noteholders as we manage through the current environment.
Penney joins luxury department store chain Neiman Marcus, J.Crew, and Stage Stores in filing for bankruptcy reorganization.
More about JCPenny, coronavirus pandemic, Chapter 11 Bankruptcy, Restructuring, Business
 
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