JC Penney officially files for bankruptcy and unveils restructuring

$JC Penney Co Inc$, earlier halted, confirms it has filed for bankruptcy, ending weeks of speculation on the ways forward for the struggling retailer. JCP filed for Chapter 11 after reaching a restructuring support agreement with lenders holding approximately 70% of JCPenney’s first lien debt. Plan will cut billions from the company's indebtedness, while the company continues to bring customers back to stores as they slowly reopen around the country.
JCP notes that prior the health conditions, it had met or exceeded its 5 financial objectives for 2019, with comp. sales improvement in the majority of its divisions. Received DIP financing amounting to $900M ($450M in new money), and had $500M in cash as of the Chapter 11 date. Co. will explore opportunities to maximize value during this process including a third-party sale process. Process will also include revamping stores, including a reduction in footprint comprising of store closures in phases.