J.C. Penney Files For Bankruptcy after Long-Struggling
Retail Company Is Closing Down After a Century amid COVID-19 Pandemic
J.C. Penney files for bankruptcy after long-struggling with his financial state amid coronavirus outbreak. The retail sales at the J.C. Penney have dramatically fallen down since 2016. The franchises of departmental stores are accessible in 49 states across the United States as J.C. Penney has 859 in the US and Puerto Rico.
The amount of J.C. Penny stores located now across the United States is more than three-quarters of what it was in 2001. The company’s total amount of money obtained from retail sales in the last financial year was $11 billion, which is one-third of its sales revenue previously.
The Texas-based retailer J.C. Penney files for bankruptcy, after being founded for more than a century ago in the United States, have had around 90,000 part and full-time employees in February 2020. The coronavirus pandemic has caused multiple challenges in our society, including our family, loved ones, close friends, communities along with our whole country.
Due to the ongoing outbreak of COVID-19 across the whole world, mostly affecting the areas of the United States, the retail industry in the region has experienced a different reality, causing the company to make profound and difficult decisions in running the business to provide protection and safety for their employees and customers as J.C. Penney files for bankruptcy due to reduced retail revenue.
Before the pandemic has struck the country, J.C. Penney was making significant advancement in reconstructing their company under their renewal strategy, and their efforts began to succeed. While the company was working trying to strengthen its financial state, the closure of its chain stores across the United States due to the coronavirus pandemic affected their outstanding debts, resulting in J.C. Penney files for bankruptcy.
The Texas-based retail company has commitments for $900 million for help in the financial department from its pre-existing lenders to fund bankruptcy that includes the amount of $450 million of new money. They had $500 million in the form of cash available before the Chapter 11 filing date.
Closing down of J.C. Penney stores across the country
As J.C. Penney files for bankruptcy, they are going to reduce the number of their franchise stores located across the United States in phases. The company is expected to close some specific branches with details and timing provided before hand to their customers.
The retailer will be allowed to keep open some of their selected stores along with continuation in offering their contact-free curb-side pickup service amid the coronavirus pandemic, available at all stores. Even after J.C. Penney files for bankruptcy, the e-commerce platform of the company will be able to continue offering its services, along with continuation if the offering of regular customer care services according to normal schedule.
J.C. Penny is now working towards a strategy that will help them refocus on their retail stores, resulting in a turnaround in bankruptcy. The process will include reestablishment of fundamental retail stores; revisualize their merchandise along with rolling out innovative ideas.
J.C Penny merger
Due to the coronavirus pandemic affecting the entire country severely, J.C. Penney files for bankruptcy amid lockdown. Due to the critical financial situation of the company, even before the coronavirus outbreak, J.C. Penny has been forced to join their forces with other departmental chain stores Stage stores and Neiman Marcus.
Departmental stores are struggling to make money as brands have sidestepped and are selling to customers directly. The e-Commerce platform has grown very much in the last few years, that has lured a massive number of customers from visiting their retail stores. The company has begun providing essential items to the rural American in 1913, but now J.C. Penney files for bankruptcy after struggling for a long time financially.
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