Texas store chain JC Penney to file for bankruptcy as soon as next week

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Texas store chain JC Penney to file for bankruptcy as soon as next week

JC Penney Co. Inc., the Plano, Texas-based American departmental store company having had 865 stores across 49 US states alongside Puerto Rico, had been devising itself to file for a Chapter 11 bankruptcy protection as soon as by next week, while the departmental store chain had also been working up on a plan to permanently close a quarter of its stores, joining a string of major US retailers which had botched to stay afloat amid a treacherously tattering water stemmed from the pandemic’s financial fallouts, people familiar with the subject-matter had unveiled on Friday, the 8th of May 2020, on condition of anonymity as the sources were not authorized to speak publicly over the issue.

If truth is to be told, a bankruptcy claim for JC Penney would curtain off an eventful timeline of 118 years, nevertheless, over the last decade the departmental store company had witnessed a protracted decline of its businesses amid an intransigent growth of online shopping and a horrendous decay of brick-and-mortal shops, eventually leaving the company with a staggering $4 billion in debts even before the pandemic had set foot on the continent.

Apart from that, the sources also added on Friday (May 8th) that the Plano-based company had been in advanced stage discussions with its creditors for debts aimed at bolstering its finances to see through the periods of bankruptcy proceeding and the so-called debtor-in-possession loan could amount to a total between $4 billion to $5 billion.

On top of that, the timing of the bankruptcy filing would likely to depend on the time it would receive from the creditors, said one of the sources.