Texas departmental store chain JC Penney files for bankruptcy protection

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Texas departmental store chain JC Penney files for bankruptcy protection

On Friday, the 15th of May 2020, JC Penney Co. Inc., the Plano, Texas-based luxury departmental store chain having operational in 846 locations in the United States alongside Peurto Rico, had filed for a chapter 11 bankruptcy protection saying that the company had been hoisting up a plan to a permanent closure of some US stores alongside an exploration of a possible sale, marking up the third major US Departmental store chain to file for a bankruptcy protection in less than a month over the narratives of a prolonged store closure due to the pandemic outbreak across the United States.

In tandem, earlier this month, US luxury department store chains Neiman Marcus alongside J. Crew had filed for bankruptcy, while large-scale brick-and-mortar stores such as Walmart Inc. seem to be squeezing the sales of small-scale retailers by offering low-cost apparels online.

As a matter of fact, Friday’s (May 15th) announcement of the Texas-based US luxury departmental store chain, long-hailed for its fashionable jewellery collections, came forth a couple of days after the US departmental store chain had told in a statement that it had reached a $900 million in so-called debtor-in-possession financing deal from the creditors to see through the periods of bankruptcy proceedings, while the company had also added that the roughly $900 million in debts was comprised of $450 million in fresh capital raising.

Apart from that, JC Penney was also quoted saying in a statement on Friday (May 15th) followed by the reveal of its bankruptcy filing that the department store company, which had 843 US stores until April 20th, would phase out some stores in phases and would disclose further details over the coming weeks, while a source familiar with the issue said to a press agency that the company had been planning to shutter down 200 stores initially.