J.C. Penney Shops for Cash in $932M Share Sale

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Sept. 27 (Bloomberg) -- Bloomberg Industries’ Poonam Goyal examines J.C. Penney’s $932 million share sale at $9.65 per share and what it means for the economic health of the retailer. She speaks on Bloomberg Television’s “Market Makers.”


Two days ago mike ullman sat down with investors is that we are in good shape.

That is the message we have been hearing throughout.

Goldman puts out a note saying they are running out of cash and now they are raising more money.

What gives?

Basically they need money.

They always need money.

It is just how long they can survive with the current $1.5 billion they have.

They will now say they went the year $1.3 billion so when asked to billion will buy time.

The fact that they went to an equity offering instead of a bond offering, does it annoy shareholders?


It has to.

Most people would have expected real estate.

That is what we heard earlier.

So at what offering definitely dilutes shareholder value and it must be annoying.

This is a big knock on third- quarter results.

What do they need to do to turn it around?

Home furnishings is lacking.

I've or six months ago they were saying home furnishings -- five or six months ago said home furnishings is where they would make tons of the.

It is not doing well.

Is that because they don't know their brand, what they put into home furnishings is not who the jcpenney customer is?

The view goat to jcpenney to buy a small plate for $50 -- do you go to jcpenney to buy a small plate for $50? probably not.

Second-half comparable same- store sales were going to improve, they said.

The you believe them?

They could, but they lost $4 billion in sales.

A slightly positive comp will not recover that.

It will take time.

It is a multiyear turnaround.

How much of an outlier are they compared to other retailers?

Not long ago we saw best buy, american eagle, the gap going through terrible runs but this one we are a potential -- paying attention to because of bill ackman and ron johnson.

Is this any different?

What they did nobody has done before.


Nobody has really gutted a store, put more merchandise to attract a new customer and then go back to basics.

Is this a smart move to raise money and inequity offering to have the capital to push and while they can -- capital cushion while they can raise money?

It buys some time and they need time to have a successful turnaround.

What are people saying about goldman sachs and their role?

Look at the stock over the last two days.

If they had done this offering a week ago they could have done it at $14 a share.

Oldman and citibank put out a note and now look at where we are.

-- goldman and citibank put out a note.

Goldman is usually best of class so you wonder if they knew they had to lower they -- their capital.

They used more cash than they originally anticipated.

The shares, if they are looking of the books, they probably new shares would come down.

Either the monkey business or

This text has been automatically generated. It may not be 100% accurate.


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