The American department store JC Penney filed for bankruptcy by becoming the last company to be hit by Covid-19.
The 118-year-old store sells clothing, cosmetics and jewelry in more than 850 locations across the country. It employs more than 80,000 people.
Last Friday, it filed for bankruptcy under Chapter 11, allowing it to restructure even if it can no longer pay its debts.
JC Penney’s announcement comes after J Crew filed for bankruptcy last month.
There had been rumors of an impending bankruptcy after JC Penney missed interest payments in April.
A company statement said it has $ 500 million (£ 400 million) in cash and has received funding commitments of $ 900 million from lenders.
He said some stores would close as a result.
- J Crew Files Bankruptcy Protection
- Fed Warns of Slow Recovery Without More Viral Aid
“The coronavirus pandemic has created unprecedented challenges for our families, loved ones, communities and country,” said executive director Jill Soltau in a statement.
JC Penney was founded in Wyoming by James Cash Penney in 1902. His belief was that prices should be low, fixed and marked – a departure from the bargaining that was common at the time.
It survived the Great Depression and developed during the 20th century. But with the introduction of online shopping, the company began to struggle.
It has closed hundreds of stores and thousands of jobs in recent years.
Last year, it reported sales of $ 10.7 billion, a decline of more than $ 7 billion in 10 years.
“Dreading this for years”
Many people shared their memories of the store on social media.
Jade Jurek wrote on Twitter: “Be honest – JC Penney was already in trouble. That being said, I’m a big fan because I bought my wedding dress at the store in 1987. “
Former employees and their loved ones also shared their memories of the store.
Jennifer Grimes wrote on the company’s Facebook page, “I love you. You were my job in high school and college. I just placed a huge order for towels and sheets this week and then heard about bankruptcy today. Please do everything you can to stay in. I am really sorry for the way e-commerce has hurt you. “
David Thomas said: “Personally sad for me and I have been dreading this for years. My father was a JCP store manager, retired in the late 1990s, and it was a wonderful profession for him. It was a good time and I am sad for those who lost their jobs with this news. “