J.C. Penney is considering filing for bankruptcy protection as the retailer grapples with the fallout from the coronavirus pandemic and
its own long-in-the-making struggles.
The Plano, Texas-based company is exploring the possibility along with a range of other options, including out-of-court debt restructuring, according to a person familiar with the deliberations who was not authorized to speak publicly.
Reuters first
reported Tuesday that J.C. Penney was considering the bankruptcy filing to "rework its unsustainable finances and save money on looming debt payments" in hopes of continuing operations.
With all of its stores temporarily closed because of the coronavirus, J.C. Penney is bleeding cash while it awaits the chance to get back on its feet.
“JCPenney has been engaged in discussions with its lenders since mid-2019 to evaluate options to strengthen its balance sheet and maximize its financial flexibility, a process that has become even more important as our stores have also closed due to the pandemic," the retailer said in a statement. "We remain focused on our Plan for Renewal and look forward to when we reopen our doors.”