Deals
J.C. Penney Skips Interest Payment, Mulls Its Alternatives
- Company says pandemic has made strategic talks more important
- Retailer not paying $12 million on notes due in 2036 bonds
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J.C. Penney Co. is skipping an interest payment, putting the struggling retailer on the path toward a potential default on its debt.
The department store chain said it’s not paying $12 million due today on its 6.375% senior notes due 2036. Instead, it’s invoking a 30-day grace period, which keeps the missed payment from becoming a formal event of default, and evaluating strategic alternatives.