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JCPenney Is At A Crossroad And The Clock Is Ticking

July 29, 2020

Via: Forbes
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Many suitors are knocking at JCPenney’s doors. Sycamore Partners, Authentic Brands, Hudson’s Bay and others. However, I feel that the company might want to try to refinance with lenders and try to continue as a freestanding company. The current deadline set by their bankruptcy filing is on July 31 (this Friday).

In the most recent filing with the Securities and Exchange Commission, the company reported a net income of $47 Million for the month ended July 4, 2020. That compared to a net loss of $25 Million in the previous year. However, net sales dropped 21% from $737 Million to $682 Million. That is not good, and reflects closed stores, weak customer traffic in open stores, and a general lack of fashion newness that would make a visit to a store mandatory.

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