J.C. Penney is reportedly in talks with lenders ahead of a bankruptcy filing that could occur by the end of this week.
According to a CNBC report citing unnamed “people familiar with the situation,” the retailer is seeking $450 million in financing on a “debtor in possession” loan that would require the company to achieve specific goals in order to receive the second half of the loan.
The sum is less than the $1 billion the retailer initially sought, although J.C. Penney would be able to draw $225 million of its bankruptcy loan on the first day of the loan’s approval.
CNBC’s sources stated J.C. Penney could file for bankruptcy as early as Friday, and it is considering a plan to close between 180 and 200 stores while in bankruptcy. The company operated 846 stores and had about 90,000 full-time and part-time employees before the COVID-19 pandemic shut down the nation’s department stores.
J.C. Penney has a Fairfield County presence in Danbury and Trumbull. In New York, the retailer has stores in Middletown and Poughkeepsie; its store at Palisades Center in West Nyack closed in 2017.