JCPenney Files for Chapter 11
As America’s economy has continued to drop over the past 2 months due to the global pandemic, the future of our country is anything but clear. The governments decision to halt economic growth in order to save the lives of our country is a tough decision to understand, but also to make. With the amount of time passing where stores remain closed, we can foresee many businesses filing for bankruptcy.
JCPenney has officially filed for Chapter 11 as of Friday May 15 in order to bring down their astronomical amount of debt and restructure financially. Of course, filing for any form of bankruptcy seriously discredits a business, but if JCPenney wants to continue opening its doors, this was the only way to help it.
JCPenney’s plan of action includes a restructuring support agreement (RSA) that the court will continue to oversee between lenders who hold about 70% of JCPenney’s lien debt. Terms and agreements have been pre-arranged to allow a sense of relief during this process. As the debt is payed off, the financial restructuring will occur within the organization to ensure this never happens again. Even with a smart new plan, some stores are still expected to close for good.
JCPenney continues to support its customers throughout this time, and with new states opening every week, its stores will open when the timing is safe. JCPenney has been a major department store for years and has been shown a tremendous amount of support from its employees, customers, and vendors. JCPenney is doing everything they can to protect its loyal workers, and will continue to provide relief for its customers during these unprecedented times.
JCPenney is not the only nationwide department store to file for bankruptcy as Neiman Marcus has also filed for Chapter 11 in the recent weeks. The two department stores offer brands to different levels of cliental, but have both built a solid plan for future endeavors.
If you are a supporter of either of these two businesses, please consider supporting them throughout this crisis.
Photo Credits:
https://www.dailywire.com/news/jcpenney-files-for-chapter-11-bankruptcy
https://abc11.com/jc-penney-has-filed-for-chapter-11-bankruptcy-protection-a-report-said-friday/6186759/
Report: Kaitlin Gallagher
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