JCPNQ - J.C. Penney Faces An Uncertain Post-Restructuring Future
- J.C. Penney is expected to exit restructuring with Brookfield and Simon owning its retail and operating assets and DIP and first-lien lenders owning most of its real estate value.
- Second-lien and unsecured noteholders and common shareholders are not expected to see a recovery.
- Despite shedding billions in debt, J.C. Penney's future still looks murky due to the ongoing effects of the pandemic.
- Excluding liquidating stores, comparable sales appeared to be down by around -33% in September, and some of that lost business will never return.
- Thus in 2022, J.C. Penney may barely generate positive cash flow and the secular decline of department stores may have it in trouble again soon after that.
For further details see:
J.C. Penney Faces An Uncertain Post-Restructuring Future