With the coronavirus pandemic shutting down non-essential shopping across the U.S., J.C. Penney is said to be in advanced talks with bank lenders for a bankruptcy loan as large as $1 billion to carry it through a potential chapter 11 process, The Wall Street Journal reported.
According to the report, the struggling department store retailer is in talks with existing lenders Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. and is seeking a debtor-in-possession loan package of $800 million to $1 billion. The loan would keep the retailer’s operations running during the bankruptcy process.
A bankruptcy filing could come in the following weeks, the report said.
In a recent filing with the United States Securities and Exchange Commission, J.C. Penney stated that it had elected not to make a $12 million interest payment set for April 15.
The company maintained that it had elected to enter into the 30-day grace period with respect to the interest payment to evaluate strategic alternatives, none of which have been implemented at this time.