J.C. Penney to file for bankruptcy as soon as next week, sources say

[Yo_Mama_Been_Loggin]

Source: Reuters

J.C. Penney 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.

A bankruptcy filing would cap a long decline for the iconic 118-year-old department store chain, which struggled with a nearly $4-billion debt load and competition from e-commerce firms and discount brick-and-mortar retailers even before the pandemic's onset.

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.

The timing of a bankruptcy filing could slip depending on how much time it gets from creditors, the sources said. J.C. Penney skipped a $17 million debt payment Thursday and only has five days to make good on it before defaulting. A 30-day grace period on a $12 million payment the company skipped April 15 ends next Friday.



Read more: https://www.msn.com/en-us/money/companies/jc-penney-to-file-for-bankruptcy-as-soon-as-next-week-sources-say/ar-BB13NswP?li=BBnbfcN

[trixie2]

1. Nooooooooooooooooooooooooooooo

I love JCP. They are having huge sales right now and I am all in.

[jimfields33]

5. FREEPERS are saying "See they catered to the gays and now will close"

Ugh! I’m gay and it just astonished me how conservatives think one commercial or even a media blitz somehow equals catering to gays. It’s not like they dumped the commercials showing straight people. Conservatives are so strange.

[DesertRat]

11. I never heard that

And why would any of us care what a few moronic Freepers say anyway.

[kimbutgar]

2. I love JC Penney and this is awful

The one I go to though has been closed since March 16. I kind of was expecting it but hoped they’d survive. Sears gone now JC Penney. It will finish off t a lot of Malls.

[trixie2]

10. Shop online!!

75 - 80% off and free shipping.

Just so you know: Underwear and robes are out of stock. I guess we are all sheltering in our undies and robes.

[kimbutgar]

17. Funny the last purchase I made there was a lightweight hooded robe before the pandemic

I really loved it. Sad it might be my last JC Penney purchase.

But I will look online

[trixie2]

20. I am jealous

[msongs]

3. corporate predators will romney-ize the corpse and cheat people out of millions nt

[SoCalNative]

4. It's really ironic

that the 3 biggest companies who dominated the catalog sales business (JCP, Sears, Montgomery Ward) in their early days were never able to parlay that into online successes.

[sinkingfeeling]

6. I have always been a big customer of JCP.

[bucolic_frolic]

7. Heads up ... "debtor in possession" means shares will be worthless

That's what happened with Kmart. So so sad. Penney's was and is a great place to shop. Where will we go now?

Macy's, Nordstrom. I can't find fashion at other retailers. Target? Walmart? Kohl's? We are seriously getting down to few choices left. The boxy clothes of house brands and cheap materials are not good value in my mind.

[wcmagumba]

8. I miss the old old JC Penney...

when they still carried electronics, tools and appliances...I was just telling my neighbor that I unpacked my old MCS Turntable purchased at JC Penney in the 1980s and after replacing the cartridge and drive belt got it hooked up and it sounds good with my little stock of vinyl. Sorry to hear about their troubles...

[Jamastiene]

9. How the hell are we going to wipe our asses now?

A lot of us were counting on their Christmas catalog for supplementary TP later this year.

[bucolic_frolic]

12. Where did our polyester McMansion life go? & CEO bought 500k shares

Wow, that's a tax write-off!

[Ford_Prefect]

13. I've shopped at JC Penny all 68 years of my life.

Mom bought my diapers and baby clothes there. Been wearing JCP clothes nearly all of my life. They were almost the only store to sell my sizes. I'm 6'2" and have been bean pole thin through most of my life.
They are still the only company that makes some clothes the right way and have avoided the paper thin t-shirts and underwear trend.

I know that styles and other things change but there are some items you should always get right like a good affordable shirt, or pajamas that actually fit or, blue jeans that don't cost more than last week's groceries.

[Gidney N Cloyd]

14. I pretty much live in my old Stafford button down oxford shirts.

Some years ago they really REALLY messed up the sizing, though.

[Buckeye_Democrat]

15. Sad.

JCP was my favorite of the big brick-and-mortar retailers, back in the old days. (Old days? Did I really just write that?)

[Xolodno]

16. Was perusing some penny stocks lately...

...saw a lot of "energy" (oil) stocks there...obviously know where they are headed. But I was surprised to see JCPenny on the list....we always hear about how some companies are just "days" of going bankrupt (Barnes and Noble, Best Buy, etc.)...and they never do. But when I saw the stock price...I knew they were going to file chapter 11....that, or I just passed the deal of a lifetime. But it looks like my intuition was right again.

[Bengus81]

19. Actually Ford would be a penny stock unless they changed the pps value........

Used to be anything under $5.00 per share years ago,not sure now.

[Xolodno]

21. It's "technically" anything under 5$

...and Ford is definitely flirting with that distinction as they are just barely hovering over five bucks (JCPenny was 25 cents a share when I looked). But lets face it, Ford will get bailed out, hence why the stock is where it is.

I invested at the bottom (hopefully) and all the analysts were downgrading the ratings and issuing unload alerts in the these industries. So...I invested in theme parks, casinos, cruise lines and...er...ahem...a strip club chain (hey, sin sells). And thus far, I'm in the green (almost hit red a few days ago). I'm also looking at this long term, I don't need the money anytime soon and prepared to sit on it in the long term. But the market is crazy, just might hit my sell price sooner than I expected.

[Bengus81]

18. DOW going to go up 500 points on that news too??

Did it today on the news of the highest unemployment since the Great Depression. I can still remember when it tanked the day after Obama was elected in 2008, but not on news of 20 million people out of work today.

[Greybnk48]

22. Goddammit! I can't stand the thoughts of losing Penney's!

I have shopped their since I was a teenager and I'm 71 now. I hate this! Penney's has always carried solid quality stuff. i could depend on it if I wanted to order online.