One of the most notorious department store chains in the U.S., JC Penney, has filed for Chapter 11 bankruptcy protection on May 15th.
Despite being in business for almost 120 years, it was not prepared for the coronavirus pandemic struggles. It was already $4 billion in debt.
At the same time, the company’s statements are encouraging to believe in the best. A number of creditors are ready to help them right now. This will help restore the company’s business to its previous level of stability. As it was said, there is a plan for overcoming the crisis According to Reuters, JC Penney can shutter roughly one-quarter of the chain’s 850 stores and move forward with a leaner business model. The company needs almost $ 500 million for the reorganization period. This money has already been received.
There are no reports on the fate of the company’s staff of about 85 thousand people yet.
The CEO of the company, Jill Saltau, shared interesting information in a conversation with the press. She highlighted new advances that have helped the company get past the tipping point of the inner crisis. They have created a plan to renew the company and the results will be visible soon. The court oversees all actions in the name of achieving transparency. However, the company’s reputation is stable, so there’s no problems to lead the renewing actions to the victory. There is a chance that all workers will keep their jobs.
JC Penney reported $10.7 billion in net sales in 2019, down 8.1% from the year prior, says CNBC.37)