J.C. Penney 'will file for bankruptcy and plans to permanently close around 200 of its stores' - just days after Neiman Marcus and J.Crew also filed amid the economic fallout from the coronavirus pandemic
* Sources have told Reuters that J.C. Penney is preparing to file for bankruptcy protection as early as next week
*While the company is aiming to reorganize and reemerge, it reportedly plans to permanently shutter around 200 of its 859 stores
*J.C. Penney was first established in 1902, and currently employs nearly 85,000 people across 49 different states
*Earlier this week, luxury department store Neiman Marcus and fashion brand J.Crew both filed for bankruptcy protection amid the coronavirus pandemic
*Here’s how to help people impacted by Covid-19
By Reuters
Published: 11:02 EDT, 8 May 2020 | Updated: 04:09 EDT, 9 May 2020
J.C. Penney Co 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 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.
J.C. Penney declined to comment when approached by Reuters.
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https://www.dailymail.co.uk/news/article-8301203/J-C-Penney-file-bankruptcy-soon-week-sources.html