JC Penney has filed for bankruptcy as the recent years of climbing debt has been compounded by the coronavirus (COVID-19) pandemic.
Based out of Texas, the company filed for Chapter 11 protection on Friday.
“The coronavirus (COVID-19) pandemic has created unprecedented challenges for our families, our loved ones, our communities and our country,” JC Penney CEO Jill Soltau said in a statement. “As a result, the American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company.”
The company revealed that the reorganization will result in the closing some of its stores but didn’t specify which ones.
Stores will close in phases, but a timeline was not given.
The company also said it had secured $900 million in financing to help it remain in operation during the restructuring.
JC Penney operates 850 stores across the country, employing nearly 85,000 employees.
On Friday, the company said it reopening select stores and offering contact-free curbside pickup service at those locations.
The department store chain known for selling clothing, jewelry and cosmetics, joins a growing list of companies that have filed for bankruptcy, including, most recently, Neiman Marcus.