The COVID-19 pandemic has wreaked havoc on businesses of all types and sizes, especially those that were shuttered by government orders. Unfortunately, JCPenney was one of those businesses that took a hard hit as a result of the pandemic and has had to make some drastic decisions in order to keep its name alive. Back in May, the company 118-year-old company announced that it would be filing for bankruptcy.
Although the company had been struggling and was working toward rebuilding itself, the CEO, Jill Soltau says the COVID-19 pandemic is what has led the company to file for a Chapter 11 bankruptcy. Soltau told CNN that “until this pandemic struck, we had made significant progress rebuilding our company under our Plan for Renewal strategy—and our efforts had already begun to pay off.” JCPenney’s CEO also said that “implementing this financial restructuring plan through a court-supervised process is the best path to ensure that [the company] will build on its over 100-year history to serve our customers for decades to come.”
CNN reported that JCPenney has made an agreement with most of its lenders “on the turnaround plan that will allow it to stay in business as a more financially healthy company but will include closing [some] of its 846 stores.” As a part of this agreement, JCPenney has made arrangements with its lenders to “borrow $450 million to pay for operations during the reorganization.”
Several JCPenney Locations Scheduled to Close in Oklahoma
While the company had already planned on closing its location in the Tulsa Promenade Mall, the pandemic has pushed the company to also close stores in Muskogee, McAlester, Enid, Midwest City, and Shawnee. Tulsa World reported that store closing sales were scheduled to begin on June 12th. In regard to the stores closing, Soltau had this to say, “While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility.”
Are you considering filing for bankruptcy as a result of the COVID-19 pandemic?
If you own a business in Tulsa, OK that has taken a financial hit as a result of the pandemic and you don’t see any opportunity for rebuilding, you can contact the Henson Law Firm, PLLC to learn more about your options. Filing for bankruptcy is a big step to take and you want to be sure that it is the right one for you. If you would like to receive a free consultation with a Tulsa, OK bankruptcy attorney now, call 918-551-8995.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119