JC Penney said that it still hasn’t hired any advisors to help out with eventual restructuring or bankruptcy issues.
JC Penney said in a statement: “As a public company, we routinely hire external advisors to evaluate opportunities for the Company. By working with some of the best firms in the industry, we are taking positive and proactive measures, as we have done in the past, to improve our capital structure and the long-term health of our balance sheet. We have no significant debt maturities coming due in the near term, and we continue to maintain a strong liquidity position. Also, given our strong liquidity position we can confirm that we have not hired any advisors to prepare for an in-court restructuring or bankruptcy.”
The company has approximately $4 billion in debt that will have to be paid in the course of the next few years, and more than $1.5 billion under a revolving credit line. Based in Plato, Texas, JC Penney hasn’t been able to keep up with competitors such as Zara, and failed to invest in modern tech and new ways to attract customers.
Penney has announced plans to shut down 18 department stores in 2019. It has more than 800 stores across the US, but if the financial situation doesn’t improve, it is estimated that they will have to shut down a further 100 stores.
Shares of JC Penney are down by 17.5% and are now traded at below $1. Over the past year, the company’s stock has been reduced by over 60%.
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