JC Penney said in an announcement that they have filed for Chapter 11 bankruptcy and will close some retail locations.
WTSP reports the major retailer was struggling prior to the COVID-19 pandemic and the bankruptcy was confirmed earlier by CEO Jill Soltau. She said the decision to file for Chapter 11 bankruptcy was difficult due to several retailers having similar experiences due to the pandemic.
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“As a result, the American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company.”
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“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. While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to include the elimination of outstanding debt.”
Currently, JC Penney has 860 stores across the country but some locations will be shut down to the company’s financial issues. An announcement of the closings are scheduled for the next coming weeks.