Report: J.C. Penney to Hire Advisors as It Mulls Debt Management Options | News & Analysis

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J.C. Penney Retailer | Supply: Shutterstock

NEW YORK, United States — J.C. Penney Co Inc has approached consulting company AlixPartners LLP because the U.S. store seems at choices for managing its debt, Bloomberg Information reported on Tuesday, mentioning folks with wisdom of the subject.

Brick-and-mortar outlets are suffering to stay alongside of the shift to on-line buying groceries, and the disaster has been exacerbated by way of the coronavirus outbreak that has pressured them to shutter shops and furlough workers.

Reuters reported closing week that Macy’s Inc, the most important U.S. division retailer operator by way of gross sales, had employed funding financial institution Lazard Ltd to discover choices for bolstering its price range.

J.C. Penney has been in talks with lenders in fresh weeks about its liquidity wishes and is negotiating a conceivable debt deal, the Bloomberg report said.

Closing 12 months, J.C. Penney reportedly held discussions with attorneys and funding bankers who concentrate on advising corporations on debt restructurings and different monetary exercises to assist the store forge a turnaround amid intense pageant and falling gross sales.

The dept retailer chain faces fierce pageant from bargain outlets and has struggled to spice up the profile of its e-commerce industry to rival established gamers together with Amazon.com Inc.

The corporate additionally furloughed a majority of its hourly group of workers and salaried friends closing month, because it was once pressured to increase closures because of the well being disaster.

The store had $3.72 billion in borrowings as of Feb. 1, its newest annual submitting confirmed, with money and money equivalents of $386 million. Its 2019 gross sales fell 8% to $10.72 billion when compared with the former 12 months.

The corporate’s mixed credit score ranking, which measures on a scale of 100 to at least one how most likely an organization is to default on its debt within the subsequent 12 months, was once “1”, consistent with Refinitiv Eikon knowledge, indicating it was once anticipated to default.

J.C. Penney declined to remark. New York-headquartered AlixPartners was once no longer in an instant to be had for a remark.

The store’s stocks, which rose first of all amid broader marketplace positive aspects, have been down about 1 %.

By means of Pushkala Aripaka and Nivedita Balu; Editor: Ramakrishnan M. and Vinay Dwivedi.

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