There is a sad inevitability about U.S. department store J.C. Penney potentially exploring bankruptcy protection. The 118-year-old retailer has enough cash to survive the coming months, but it is looking into a possible bankruptcy filing to restructure its finances, Reuters reported late Tuesday, citing people familiar with the talks. On Wednesday, J.C. Penney said it wouldn’t make a $12 million interest payment due April 15, opting instead to enter into a 30-day grace period as it evaluates its alternatives.
U.S. department stores are highly exposed to the unprecedented shutdown brought on by the coronavirus pandemic. With a quarter of a million shops closed across America, never before has consumerism been so constrained.
