JC Penney has filed for bankruptcy

As the devastating effects of the coronavirus pandemic takes its toll on the US economy, department store chain JC Penney into Chapter 11 bankruptcy.

This is the fourth major retailer to meet that fate.

As part of its reorganisation, the 118-year-old company said on Friday it will be closing some of its stores and will disclose details and timing in the coming weeks.

The company operates 850 stores and it has nearly 90,000 workers.

It said that it received $US900 million ($A1.4 billion) in financing to help it operate during the restructuring.

Penney joins luxury department store chain Neiman Marcus, J.Crew and Stage Stores in filing for bankruptcy reorganisation.

Analysts warned that more retailers would file for bankruptcy as businesses continue to haemorrhage money due to the Coronavirus outbreak.

Share:

Leave a Reply

Your email address will not be published. Required fields are marked *