Coronavirus: JCPenney forced to file for bankruptcy protection | Business News

Must read

Co-operative Bank in shock merger approach to rival lender TSB | Business News

The Co-operative Bank has made an audacious approach about a merger with...

The tax fraud merry-go-round that cost billions

A former banker is now a poster boy for a scandal described as "the theft of the century". Credit: Source link

The papers: 'Hollywood horror' and 'sluggish booster campaign'

Many papers lead on actor Alec Baldwin's "heartbreak" after he fatally shot a colleague with a prop gun. Credit: Source link

Covid passes: Ministers consider widening use in Wales

Welsh government "thinking about" changes amid concern about high levels of Covid-19, says minister. Credit: Source link
StudentObserverhttp://www.studentobserver.co.uk
This is an online news portal that aims to share latest news about these topics "news, business, health, sports, technology " and much more stuff like that. Feel free to get in touch with us!

The financial pressure of the coronavirus pandemic has forced US department store chain JCPenney to file for bankruptcy protection.

Stores will be closed down following the Chapter 11 bankruptcy filing, which allows companies to reorganise in order to meet debts.

The 118-year-old company said that some of its more than 800 stores will be closed in phases throughout the Chapter 11 process.







Coronavirus: America’s Reckoning

It is the largest of four household-name retail companies to file for bankruptcy reorganisation since the pandemic landed in the US.

Luxury retailer Neiman Marcus, alongside J.Crew and Stage Stores, have also filed for bankruptcy during the outbreak.

“The coronavirus pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country,” said Penney’s chief executive Jill Soltau.

“As a result, the American retail industry has experienced a profoundly different new reality,” she explained.

However market analysts aren’t convinced that the company will survive even if it reduces it debt burden by closing stores.

:: Listen to Divided States on Apple podcasts, Google Podcasts, Spotify, and Spreaker

They note that its middle-to-low income customer base has been the hardest hit by the pandemic layoffs in the US.

“This is a long, sad story,” said Ken Perkins, president of research firm Retail Metrics.

“Penney offers no reason to shop there compared to its competitors, whether it’s Macy’s or TJ Maxx or Walmart. How are they going to survive?” he asked.

According to US Department of Labor figures, more than 36 million Americans have filed for unemployment since the beginning of March.

Unemployment in the country now stands at more than 14.7% according to official figures, the worst it has been since the Great Depression in the 1930s.

Credit: Source link

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

Covid news live: Latest updates as Government ministers reject calls for immediate plan B measures

Approval of mix-and-match COVID-19 vaccine boosters offer convenienceShadow chancellor Rachel Reeves said the government should introduce its so-called Plan B to tackle the rising...

Covid passes: Ministers consider widening use in Wales

Welsh government "thinking about" changes amid concern about high levels of Covid-19, says minister. Credit: Source link

Covid: Labour calls for Plan B measures in England

But the chancellor says the data does not suggest "immediately" moving to government's back-up plan. Credit: Source link

Tesco say website and app down after hack attempt

Britain's biggest supermarket investigates a possible hack as shoppers are locked out for more than a day. Credit: Source link

Veteran Receiver Chris Hogan Retires After Successful 10 Year NFL Career

Last Updated on 24 Oct 2021 12:39 pm (UK Time) After a brief return to the NFL, this season with the New Orleans Saints, receiver Chris...