JC Penney: US department store files for bankruptcy
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JC Penney: US department store files for bankruptcy
American department store JC Penney has filed for bankruptcy becoming the latest company to be hit by Covid-19. The 118-year-old store sells clothing, cosmetics and jewellery at over 850 locations across the country. It employs more than 80,000 people. It filed for Chapter 11 bankruptcy on Friday allowing it to restructure even though it can no longer pay its debts. A statement from the company said it has $500m (£400m) in cash and has received financing commitments of $900m from lenders.
JC Penney's announcement comes after J Crew filed for bankruptcy last month. There had been rumours of an impending bankruptcy after JC Penney missed interest payments in April.
"The coronavirus pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country," chief executive officer Jill Soltau said in a statement.
JC Penney was founded in Wyoming by James Cash Penney in 1902. His belief was that prices should be low, set and marked - a move away from the haggling that was commonplace at the time. It survived the Great Depression and grew during the 20th Century. But with the introduction of online shopping the company began to struggle.
Last year it reported sales of $10.7bn, a decrease of more than $7bn in 10 years.
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