JC Penney: US department store files for bankruptcy

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Reuters

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The company filed for Chapter 11 bankruptcy on Friday

American department store JC Penney filed for bankruptcy, becoming the latest company hit by Covid-19.

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The 118-year-old store sells clothing, cosmetics and jewelry in more than 850 locations across the country. It employs more than 80,000 people.

He filed for Chapter 11 bankruptcy on Friday, allowing it to restructure, although he can no longer pay his debts.

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JC Penney's announcement comes after J Crew went bankrupt last month.

There were rumors of an impending bankruptcy after JC Penney missed interest payments in April.

A company statement said it has $ 500 million in cash and has received financing commitments from $ 900 million from creditors.

He said that some stores would close as a result.

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"The coronavirus pandemic has created unprecedented challenges for our families, loved ones, our communities and our country," said executive director Jill Soltau in a statement.

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JC Penney was founded in Wyoming by James Cash Penney in 1902. His belief was that prices should be low, set and marked – a departure from the discussions that were common at the time.

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JC Penney survived the great depression and grew up during the 20th century

It survived the Great Depression and grew during the 20th century. But with the introduction of online shopping, the company started to struggle.

It has closed hundreds of stores and thousands of jobs in recent years.

Last year, it recorded sales of $ 10.7 billion, a drop of more than $ 7 billion in 10 years.

& # 39; Fearing this for years & # 39;

Many people shared their memories of the store on social media.

Jade Jurek wrote on Twitter: "Be honest – JC Penney was already in trouble. Having said that, I am a huge fan because, in fact, I bought my wedding dress at the store in 1987."

Former employees and relatives also shared their memories of the store.

Jennifer Grimes wrote on the company's Facebook page: "I love you. You were my job in high school and college. I just placed a huge order for towels and sheets this week and then I heard about bankruptcy today. Please do everything what you can to regret how e-commerce hurt you. "

David Thomas said, "Personally saddened by me and has feared this for years. My father was a store manager at JCP, retired in the late 1990s, and that was a wonderful profession for him. Those were good times and I am sad for those who lost jobs with this news ".

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