Lawyer says results could be disastrous if the US company does not act on restructuring
Shoppers enter the JC Penney department store in North Riverside, Illinois, the US. Picture: REUTERS/KAMIL KRZACZYNSKI
JC Penney, which filed for bankruptcy on Friday, has started reopening some of its more than 800 stores in stages, but concerns remain that customers might be slow to return amid health concerns and job losses not seen since the Great Depression. It plans to close many stores permanently in the weeks ahead.
“You said it’s fast, but fair. I want you to know that at least my looking at it says it’s not fast enough,” Jones said of JC Penney’s plan, encouraging the company to beat its own deadlines. JC Penney, which employs about 85,000 people, envisions handing control to lenders and reducing a significant portion of its nearly $5bn of debt after reorganising into two companies. One would be a company operating its business while the other would be a real estate investment trust holding some of the company's property, plans previously reported by Reuters.
The company hopes to persuade lenders to support its reorganisation, which will require significant funding, he said. “A lot of that is dependent on performance and unknowns.”
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