Struggling department store chain J.C. Penney may soon be seeking debt relief from its creditors as the retailer prepares for the holiday season, Bloomberg reported.
Citing sources familiar with the retailer, the report said that officials with J.C. Penney and some of its bondholders are said to be on the verge of signing non-disclosure agreements, which may happen by the end of September. The agreements would allow groups representing lien holders access to the retailer’s confidential information.
A spokesperson for J.C. Penney declined to comment on the report.
In July, Reuters reported that the company had hired advisors to examine restructuring options for its approximately $4 billion in debt.
J.C. Penney responded at the time saying the company had “no significant debt maturities coming due in the near term” and that the company in July had not hired advisors to prepare for an in-court restructuring or bankruptcy.
A report in August from Bloomberg said that the retailer’s creditors were looking to meet with J.C. Penny officials to discuss a possible debt swap.