US retailer JC Penney has filed for Chapter 11 bankruptcy protection due to the challenges of the Covid-19 pandemic.
The retailer will be shutting some stores as part of its reorganisation. The stores will close in phases throughout the Chapter 11 process, with details disclosed in the coming weeks.
“As a result, the American retail industry has experienced a profoundly different new reality, requiring JC Penney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company.
“Until this pandemic struck, we had made significant progress rebuilding our company under our plan for renewal strategy – and our efforts had already begun to pay off. While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to include the elimination of outstanding debt.”
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