JC Penney Denies Debt Restructuring

The US giant JC Penney reported that the company had hired consultants to study the debt restructuring plan and responded that the company still maintained "ample liquidity funds" and was not prepared to restructure or apply for bankruptcy.

In a statement, the retailer pointed out that as a listed company, external consultants are often employed to conduct opportunistic assessments and take positive and positive measures, like past work, in order to improve the company's capital structure and long-term health on its balance sheet.

The statement said last week that JC Penney had recently held talks with lawyers and investment bankers on debt restructuring and other financial compensation schemes.

According to the Reuters report, as of the first quarter of May 4th (2019), the net loss of the retailer expanded to $154 million, which is being studied including raising additional cash or negotiating with creditors to postpone the debt maturity option.

Reuters quoted the source as saying: "after discussions with reorganizing experts, JC Penney will take relevant measures in the coming months to increase the company's financial breathing space and avoid potential future bankruptcy applications".

However, JC Penney said in its statement that there was no significant debt maturity in the short term and noted that sufficient liquidity would continue to be maintained.

"In addition, in view of our ample liquidity, we can confirm that we have not hired consultants to prepare for the reorganization or bankruptcy of the court."

Earlier this year, JC Penney said that before the revival, the 18 full range of commodity stores will be closed this summer, including plans to abandon major appliances and other products, and pay more attention to products with higher profit margins, such as clothing.