The apparel retailer company, J.C. Penney 153 stores across the country. Jim DePaul, EVP of stores ensures that the stores will follow health regulations laid out by the local and state mandates as well as the Center for Disease Control and Prevention.

The retailer has the largest bankruptcy filed making it one of the first giants to do so. They have filed a Chapter 11 bankruptcy, just last week.

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Photo Courtesy: J C Penney

The reopening stores

With 7 stores in Indiana, 11 in Ohio, 12 in Florida and 34 in Texas reopening on Wednesday; the company is working hard to prevent liquidation.

The locations in Arkansas, Colorado, Georgia, Kansas, and Rhode Island have already reopened or will reopen in the next few weeks.

Contactless checkout and curb-side pickup services make the retailer COVID-19 friendly. Face masks, plexiglass shield barriers in the stores are a must.

Avoiding liquidation

The retailer has to work hard to reach the steps in the agreement in order to avoid the bankruptcy turning into liquidation. 14 July or 15 August is the deadline for this.

By the month of July, J.C. Penney will begin a restructuring of the business if they are able to get $225 million from the lenders.

If the lenders are in favour of the business plan that the company comes up with, then they give them the rest of the money from the $450 million.

But if the retailer does not receive the agreement from lenders, the bankruptcy converts to liquidation in August.

H/2 Capital Partners, a hedge fund with real estate investment; Ares Management Corp., Sixth Street Partners, and KKR & Co., a leading company in the leveraged buyout of Toys R Us; are J.C. Penney’s biggest lenders.

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