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)
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.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
US apparel and footwear group Deckers Brands, the maker of Ugg footwear, has revealed it is exploring "strategic alternatives", including a potential sale of the firm, on the back of a disappointing t...
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- Industry groups reaffirm commitment to Bangladesh
- Using worker surveys to drive supply chain change
- Where does VF supply chain sit in growth strategy?
- Nike filed patent for "reinforced denim"
- Gap unveils five-year sustainable fibres pledge
- US textile industry applauds Trump executive order
- Pentland Brands reveals Berghaus factory list
- Adidas and Reebok top transparency index
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Myanmar - ISA Country Report