Will J.C. Penney file for bankruptcy?
The company is reportedly is close to securing $450 million in funding that it will use to navigate a possible bankruptcy filing.
If the company does file for bankruptcy, it will be the third major U.S. retailer to fall victim to the coronavirus pandemic and ongoing economic shutdown.
Citing people familiar with the matter CNBC reported that the retailer is planning to file for bankruptcy as soon as this Friday, though that timing could still be delayed.
The company is considering closing 180 to 200 stores while in bankruptcy.
J.C. Penney announced at the end of March that it was extending the shutdown of its portfolio of 850 stores and its head office, and furloughing the majority of its hourly-wage employees. The retail chain skipped two debt payments in the last month.
In a regulatory filing, the company revealed a series of executive compensation payouts designed to “enable the company to retain and continue to motivate” executives and other employees “through the volatile and uncertain environment affecting the retail industry.”
Specifically, the company’s board has agreed to grant awards based on 2019 performance that were originally scheduled to payout at the end of the 2021 fiscal year, including a $4.5 million payout to CEO Jill Soltau and $1 million payouts to Chief Financial Officer Bill Wafford, Chief Merchant Michelle Wlazlo and Chief Human Resources Officer Brynn Evanson.
When asked whether or not J.C. Penney can survive, Jim Cramer had one clear answer: "No."
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