J.C. Penney Co Inc’s stock has plunged more than 70% over the past year and now ...
Declining visits from shoppers have led to years of falling sales and strained cash flow at Penney, raising concerns among shareholders, creditors and vendors shipping merchandise that the company won’t be able to meet its financial obligations, even those four years away.
“We weren’t surprised,” said Levi Strauss & Co Chief Executive Officer Chip Bergh in an interview. “We’re looking at their debt and we’re managing our credit with them appropriately.” Penney’s latest debt advisers include restructuring specialists from law firm Kirkland & Ellis LLP and investment bank Lazard Ltd , according to people familiar with the hires.The firms, which had no comment, have worked on significant workouts with other retailers, including on a debt restructuring earlier this year for luxury clothier Neiman Marcus Group Ltd executed without the need for a bankruptcy filing.
Levi’s Bergh said Penney is a “long way away” from suffering the fate of Sears Holdings Corp , which filed for bankruptcy last year. “It’s worth pointing out that when Sears declared bankruptcy, we had negligible financial exposure because we had been managing credit in an appropriate way. We’re doing the same thing with J.C. Penney,” he said.
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