JCP - J.C. Penney on the Verge of Declaring Bankruptcy According to Anonymous Sources
Citing anonymous sources yesterday, Reuters reported J.C. Penney (NYSE: JCP) is investigating a Chapter 11 filing. The major retailer would become the first to file bankruptcy as a result of the coronavirus pandemic.
While the company still has a sizable cash reserve, all of its 850 stores are closed and a range of significant annual debt payments will arrive shortly. The retailer was already in trouble and attempting a turnaround before COVID-19, and now faces a situation where its income is cut off for an unknown period of time.
The company reportedly hired specialist consulting firm AlixPartners LLP on Monday, apparently looking for guidance out of its difficulties. Analysts have noted that the company has several options moving forward, including rescue financing, non-bankruptcy changes to its debt, and bankruptcy.