J.C. Penney Co Inc filed for bankruptcy protection on Friday with plans to permanently close some stores and also explore a possible sale, making it the latest brick-and-mortar retailer to crumble as prolonged store closures in response to the COVID-19 pandemic drive a final stake through long-troubled businesses.
IN THE FOOTSTEP OF OTHER BANKRUPTCIES
Like other retailers, J.C. Penney has started reopening its stores in stages as many states have begun to loosen coronavirus restrictions. But with U.S. unemployment now at the highest level since the Great Depression of the 1930s, there are serious concerns that consumer spending will remain dampened for a prolonged stretch.
The coronavirus crisis forced J.C. Penney to prepare for a bankruptcy filing to address its strained finances, which on the horizon included more than $2 billion of debt coming due in 2023. The company earlier this month resolved a legal dispute with Sephora, the French beauty chain owned by LVMH that had threatened to end its agreement to sell cosmetics inside J.C. Penney stores.
J.C. Penney stores initially dotted Main Streets in rural towns dominated by farmers. After expanding to operate more than 30 stores, it went public in 1927. FILE PHOTO: A J.C. Penney Company Inc. store is pictured at a mall in Langhorne, Pennsylvania, U.S. November 17, 2018. REUTERS/Suzanne Barlyn
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