J.C. Penney files for bankruptcy, stock falls 29%
Today 6:53 PM ET (MarketWatch) 0.165 -0.0713 DIP $900M
J.C. Penney Co. Inc. (JCP) said late Friday that it had filed a Chapter 11 petition for the reorganization of the company and entered into a restructuring agreement with lenders holding roughly 70% of a portion of the company's debt. Shares of J.C. Penney fell 29% in the extended session. "The coronavirus (COVID-19) pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country," J.C. Penney Chief Executive Jill Soltau said in a statement. "As a result, the American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company." The company said it would continue operations and that it had $500 million in cash as of the Chapter 11 filing date. It also said that it had received commitments for $900 million of debtor-in-possession financing from its existing debt holders. The company expects the money will be sufficient to meet its operational and restructuring needs. As part of its reorganization, J.C. Penney said it planned to close stores in phases, the first of which it will announce in the "coming weeks."
-Max A. Cherney; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 15, 2020 18:53 ET (22:53 GMT)
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