J.C. Penney has decided to close its Manhattan Mall location in New York’s Herald Square.
In the first quarter, Macy’s posted a big loss, but the company said recovery from COVID-19 pandemic-related shutdowns has been strong.
Macy’s is restructuring to align its cost base with anticipated near-term sales as the business recovers from the impact of the COVID-19 pandemic, including the closure of stores from March 18 through May 4, 2020 and gradual reopening.
A team of disposition firms consisting of Gordon Brothers, Hilco Merchant Resources, Great American Group and Tiger Group have commenced store closing sales at 137 J.C. Penney stores across the U.S. The closures are the company’s first step in implementing a planned store optimization strategy.
Macy’s has secured new financing to shore up its business, while revealing that its preliminary sales and earnings results for the first quarter included a loss and lower sales, although it said e-commerce and reopened stores are performing well.
Looters broke into Macy’s flagship store in New York’s Herald Square on the night of June 1 in the aftermath of protests related to the death of George Floyd, and the company issued a brief statement on June 2 about how civil unrest has affected the company.
As it looks to a future beyond the COVID-19 crisis, Nordstrom pointed to its pursuit of strategic omnichannel initiatives even as the company reported sales and earnings declines in the first quarter.
Today, May 20, J.C. Penney has reopened 34 Texas stores, 12 Florida stores, 11 Ohio stores, and seven Indiana stores bringing the total it has operating to 153 after temporarily closings due to the COVID-19 pandemic.
J.C. Penney stated in a bankruptcy court document that it must emerge from Chapter 11 quickly in preparation for the 2020 holiday season, shortly after announcing that it had received approvals from the U.S. Bankruptcy Court for the Southern District of Texas regarding First Day motions related to the company’s voluntary Chapter 11 petitions, including approval for it to access and use its approximately $500 million in cash collateral.
J.C. Penney has filed for Chapter 11 bankruptcy protection and entered into a restructuring support agreement with lenders holding approximately 70% of its first lien debt in an effort to reduce the company’s outstanding debt and strengthen its financial position.
As many anticipate a chapter 11 bankruptcy announcement, J.C. Penney made an approximately $17 million interest payment that was due and payable on May 7 regarding the company’s senior secured term loan credit facility.