Blog: JC Penney share price tumbles on cash concerns

Katie Smith | 7 August 2013

Some analysts believe JC Penney could be bankrupt by Labor Day (2 September)

Some analysts believe JC Penney could be bankrupt by Labor Day (2 September)

Struggling department store retailer JC Penney has seen its share price tumble after concerns it would close the current quarter with US$1.5bn in cash sparked worry among investors.

The retailer's share price fell 3.9% to $13.28 at the close of play yesterday (6 August) - the lowest level it has been since 2001. And it has continued to fall today, down 2.4% to $12.96 at 2:40 GMT time.

It also comes after rumours circulated that chief financial officer Ken Hannah was considering leaving the company. 

The retailer yesterday appointed Debra Berman as senior vice president of marketing, with a focus on "revitalising" the JC Penney brand. 

JC Penney last week disputed cash flow concerns by dismissing a report that commercial lender CIT had stopped financing deliveries from smaller manufacturers to its stores as "untrue".

Some analysts previously reported that the department store retailer could be bankrupt by Labor Day (2 September) if it continues to lose money at its current rate.

The Plano, Texas-based company, however, secured a five-year US$2.25bn loan in May - $500m more than it originally expected - to provide it with the "financial flexibility" to pursue plans to turn the business around under CEO Mike Ullman.

Ullman, who returned to JC Penney in April - replacing Ron Jonhson - has outlined plans to improve the ailing business, which include better marketing, connecting with core customers as well as attracting new ones, getting the right mix of products and strengthening the online business.

Sectors: Apparel, Retail

Companies: JC Penney

BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

NEWS

Bangladesh government steps in over labour crackdown

The Bangladesh government has responded to pressure over its crackdown on labour activists after a number of global brands and retailers pulled out of this week's Dhaka Apparel Summit in protest....

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

BLOG

Trump administration starts to shake up trade

Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...

NEWS

Gildan books sales and profit hike in Q4

Apparel maker Gildan Activewear has booked a rise in both earnings and revenue in its fourth-quarter, thanks to growing sales in its printwear and branded apparel businesses....

BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

just-style homepage



Forgot your password?