The famous JCPenney Stores is on the way to start with a series of sales liquidation very soon. There is going to be a sales closure in several of its outlets with the next few weeks. The confirmation of this news comes from a trusted source, the official attorney of the organization. The announcement was made on Thursday in a status update after a virtual court session. The Texas, Plano based company went to file a bankruptcy protection suit according to Chapter 11 of the Lawbook. The decision was taken during the beginning of this month after the company went into heavy loss. They are now under a restructuring plan and due to this as many as 242 stores will permanently shut down.
The next hearing for the proposition is scheduled to take place on the upcoming June 11. According to official sources, the company decides to start the shutting down procedure ASAP. They are now just waiting for the formal verdict of the court. If the June 11 trial is successful, they may start with the closure of a few units on that very day. The next batch of sales closing on outposts will take place on July 1. The public is eager to know which stores are included in the restructuring list. However, there is no response to this from the organization’s side. Since there is a lot of confusion, a tentative date of June 4 has been decided for the disclosure of the list. It is also the day on which the next filing will take place.
Sales closure of JCPenney Company Inc
According to the spokesperson of J.C. Penney Group, the 242 stores that are to be shut down make up for about 29% of the brick-and-mortar line of the organization. The chain has also expressed that there is a plan of closing down around 192 units by February 2021. There are several targets to be fulfilled by the closing of the current fiscal year. Moreover, an additional 50 units are to be closed down in the next fiscal year. During that point, the company will have 600+ stores altogether. In March 2020, due to the Coronavirus pandemic, J.C. Penney Company Inc. had shut down 800 units. Simultaneously, they reopened 304 stores too. Presently, there are five more stores that are only offering contactless pickup services. By the next week, the company decides to reopen 200+ stores. The scale of restructuring is already clear with such massive steps being taken.
The JCPenney Company was established 118 years back and has filed for bankruptcy protection recently on May 15. The court documents of this case have made things clearer. According to reports the company now has $500 million as cash-in-hand along with $900 Million against financial commitments. The listed assets fall in the range of $1-$10 Billion which is also the rough estimation of its liabilities. The bankruptcy is not just a result of the pandemic. The company was facing a huge drop in sales, and management issues for a long time now.