Will JCPenney be on the List of Stores to Permanently Close?
A missed debt payment, talking bankruptcy and restructure, permanently closing stores - What does the future hold for the popular retailer? Sadly, this isn't the first, and it certainly won't be the last time we talk about a store possibly unable to reopen after this pandemic. However, according to CNN Business, JCPenney was facing trouble even before the coronavirus crisis, with a crushing debt load of $3.7 billion in debt at the end of 2019.
Things took a turn for the worse after they missed a $12-million debt payment earlier this week. The company released a statement saying they're taking advantage of the 30-day grace period to continue ongoing discussions with lenders and maximize financial flexibility. So, the big question - will JCPenney survive this pandemic? It's possible, but according to CNN Business, it's a big uphill battle:
There's a good chance they can survive, but this is no layup. This is going to be a three-pointer deep in the corner with time running out. JCPenney will need to drastically reduce its 850 stores. - Craig Johnson, president of Customer Growth Partners