Today Friday – JCPenney is planning to file for Chapter 11 bankruptcy protection today, and reportedly is negotiating a $450 million debtor-in-possession financing package with existing lenders.
This would be the third major retailer bankruptcy this month alone, following J. Crew and Neiman Marcus, but by far the largest. The 118 year-old department store has 846 stores that had employed around 90,000 people.
While the big box store was struggling before the Coronavirus pandemic, the current situation accelerated it’s downfall and exposes more underlying issues in the US economy related to corporate debt.