The announcement coincided with its full-year results, with growth driven by its jewelry brands.
JC Penney Goes Chapter 11, Could Close 200 Stores
The department store chain filed for bankruptcy late Friday amid mounting debt and pandemic-related losses.
Plano, Texas— J.C. Penney Co. Inc. filed for Chapter 11 bankruptcy protection late Friday as it struggled with mounting debt and the effects of the coronavirus pandemic.
Founded in 1913, the department store chain employs 85,000 workers across more than 850 locations and ranks as one of the largest sellers of fine jewelry in North America.
In National Jeweler’s 2019 State of the Majors report, J.C. Penney stood at No. 9 on the list of $100 Million Supersellers with an estimated $816 million in annual jewelry and watch sales.
The retailer plans to restructure in an effort to reduce debt by several billion dollars.
Store closures will follow in phases, with details and timing to be disclosed in the coming weeks, the company said in a news release announcing its restructuring.
The retailer may close 180 to 200 stores as part of its restructuring, CNBC reported.
“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,” said CEO Jill Soltau in a statement announcing the restructuring.
The company said it will continue to work toward the goals set out in its turnaround plan, which include driving traffic and upgrading the shopping experience, but noted “challenging” market conditions have hampered its efforts to meet its current operational and financial objectives.
The retailer raised eyebrows last week when, amid missed debt payments and the furloughing of many of its 85,000 employees, it paid million-dollar bonuses to its executives, which it said was designed to retain talent in an “uncertain” environment.
Soltau received $4.5 million while Chief Financial Officer Bill Wafford, Chief Merchant Michelle Wlazlo and Chief Human Resources Officer Brynn Evanson each received $1 million.
The retailer is gradually reopening stores, offering contact-free curbside pickup service at all open stores, and will continue to fulfill online orders.
JC Penney had approximately $500 million in cash on hand as of its filing date.
The company has received commitments for $900 million in financing from its existing first lien lenders, including $450 million in new funds.
The New York Stock Exchange notified the retailer that it would be delisted from the exchange, as per an SEC filing Monday, a decision JC Penney said it does not plan to appeal.
JC Penney’s bankruptcy filing follows Neiman Marcus’ Chapter 11 filing last week as department stores continue to struggle to compete with more innovative retail models.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.