JCPenney Files in May’s 4th National Retailer Bankruptcy
JCPenney said Saturday it had received approvals from the U.S. Bankruptcy Court for the Southern District of Texas, including authorization to use the company’s approximately $500 million in cash collateral. The Plano-based retailer filed for Chapter 11 protection on Friday—the fourth national chain to do so this month—as part of a restructuring plan.
“By entering this restructuring support agreement with our lenders, we expect to reduce several billion dollars of indebtedness, provide increased financial flexibility to help navigate through the Coronavirus (COVID-19) pandemic, and better position JCPenney for the long-term,” said CEO Jill Soltau.
The retailer said it would close an unspecified number of its 846 stores. On Friday, Soltau attributed the Chapter 11 filing to COVID-19.
“Until this pandemic struck, we had made significant progress rebuilding our company under our Plan for Renewal strategy—and our efforts had already begun to pay off,” she said.
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