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JCPenney is one of America’s oldest retailers, and here at the Krazy Coupon Lady, we love covering the best JCP deals and savings. But on May 15, the 118-year-old store filed for bankruptcy and plans to close hundreds of stores in the near future. Here’s what you need to know:
JCPenney is the latest mega retailer to file for bankruptcy on May 15.
JCPenney’s sales have been in decline since coronavirus lockdowns went into effect, which did not help the massive amount of debt they owed creditors.
According to Reuters, JCPenney has nearly $4 billion in debt that it has to repay due to declining sales over the last 20 years. And since coronavirus lockdowns, the department store chain hasn’t been able to recuperate those losses to repay creditors.
In recent weeks J.Crew, Neiman Marcus, Lord & Taylor, and others have filed for bankruptcy, but JCPenney is by far the largest. With 846 store locations and a long history of being the go-to place for affordable appliances, clothing, and beyond for a lot of families, it’s safe to say American shoppers will feel an absence when JCPenney is no longer part of their local mall.
JCPenney plans to shut down about 200 stores.
A quarter of JCPenney’s 846 stores could permanently close while the company focuses on a turnaround plan to keep from shutting down the brand completely. As part of their restructuring, JCP plans to borrow an additional $450 million from lenders to pay for operations.
The stores that have reopened in states where coronavirus lockdown restrictions have been lifted will have new safety measures in place, including plexiglass at registers and curbside pickup.
Stay tuned for more JCPenney news by downloading the free Krazy Coupon Lady app — we’ll let you know what locations will close as soon as the list is released.
In the meantime, you might like these awesome JCPenney deals.