J.C. Penney Hires Debt Restructuring Advisers, Report Says
J.C. Penney has hired advisers to help it explore options to restructure its debt, according to a report from Reuters late Thursday. Plano-based Penney is exploring options “that could include raising additional cash or negotiating with creditors to push out debt maturities,” Reuters reported, based on people familiar with the matter. Hiring debt advisers at this point isn’t unusual for a company in Penney’s situation of facing growing competition while not being able to increase sales. Penney has been struggling for years and has a new management team put together by CEO Jill Soltau since she was hired last fall. The company has been trying to fashion a turnaround for years and has sold off assets and closed stores in malls that have suffered from traffic declines and lack of investment from landlords. Read more at Dallas News.
Ask yourself this question: If Penney disappeared tomorrow, what would you miss? I have asked this question for years and the response is silence. There was a time when the answer would be at least men’s underwear (Penney had 20% of all men’s underwear sales in the US at one time) and their white sales, but both are not true any more. Once a store loses relevance, they are merely taking up space and Penney has not been relevant for years.