J.C. Penney explores bankruptcy as recovery hopes fade
U.S. retailer J.C. Penney is exploring filing for bankruptcy as the plunge in retail demand has forced the company to shut its 800-plus department stores.
Sources exclusively speaking to Reuters on the condition of anonymity say it's completely upended J.C. Penney's plans to recover its business.
It's one of many retailers that were already struggling with consumers shifting to online shopping.
The 118-year-old company had recently made some strides in its turnaround attempt, improving sales at some stores by reducing inventory and refocusing on its core business selling mid-priced apparel to middle-class families.
But the massive store shutdowns have thrown a wrench in those turnaround plans.
On top of furloughing some of its roughly 85,000 workers and slashing spending, it is now considering skipping looming debt payments in addition to filing for bankruptcy.
The company is contending with $300 million in annual interest expenses -- it owes $12 million dollars on Wednesday (April 15) and faces more than $2 billion in debt due by 2023.
