JCPenney (NYSE:JCP) news about the company avoiding bankruptcy has JCP stock up on Friday.
According to the recent JCPenney news, the company is starting to talk with its lenders about how it can manage and reduce its debt. This is a vital thing for the company to figure out as it has close to $4 billion in debt coming to term in the next few years.
The recent report about the JCPenney news claims that it is looking at signing nondisclosure agreements with bond holders and advisors. This would give these groups better insight into the company’s financial situation.
What was made apparent by the anonymous sources behind these reports is that a bankruptcy isn’t on the table. Instead, the groups are planning to come together and focus on how JCPenney can handle its debts. That will likely require further restructuring, which is what new CEO Jill Soltau is planning to do.
JCPenney has been trying to turn its business around and it includes some strange efforts for the retailer. One of these methods is a partnership with thredUP. This is a company that deals with selling used clothes online.
The deal between thredUP and JCPenney has the latter selling used clothes in its stores. It seems like a weird idea for the retailer to start looking more like a thrift shop, but the test is limited to just 30 locations.
JCP is up 17% as of Friday afternoon, but is down 29% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.