American Clothing Retail company, JCPenney Files for Chapter 11 Bankruptcy on Friday. Days after news of a bankruptcy filing emerged.
The retailer has been one of the worst hit by the Pandemic and was already in a debt and profit situation before the Pandemic.
The Company reached an agreement with its lenders to reduce their debt burden before filing for Bankruptcy.
The CEO, Jill Soltau announced in a press statement that the financial restructuring plan through a court supervised process is the best solution towards serving future customers.
JCPenney came under heavy scrutiny this week when they announced bonus payments of $1 Million or more to its top executives.
The Company also announced that the Pandemic left them in a difficult area of challenges, also compounded with the changing landscape of the retail industry, requiring the company to make drastic changes the way they run their business.
Untill this Pandemic struck, we had significant progress rebuilding our company under our plan for renewal strategy
JCPenney also announced an agreement of $900 Million of debtor-in-possession financing to help with operations during the Bankruptcy.
The Company is 118 years old, and its peak operated 1,600 locations and employed nearly 200,000 people.