JC Penney Files For Chapter 11 Bankruptcy Protection

Post Reply
arizonaguy
Veteran Member
Veteran Member
Posts: 728
Joined: July 12th, 2013, 6:07 pm
Been thanked: 5 times
Status: Offline

JC Penney Files For Chapter 11 Bankruptcy Protection

Post by arizonaguy »

I wish them the best but it doesn't look good. I'd imagine most of their larger stores in dying malls won't be around much longer.

Source: https://ir.jcpenney.com/news-events/pre ... ZV8Xbn6QuU

storewanderer
Valued Contributor
Valued Contributor
Posts: 5902
Joined: February 23rd, 2009, 3:54 pm
Been thanked: 17 times
Contact:
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by storewanderer »

Funny, they made an Interest payment this morning and some were thinking they would not be filing today after all.

Good luck with the liquidation sales; they are full of literal junk in softlines that nobody will buy, especially in women's clothing. I hope their winter buying was better than their buying from last spring/summer most of which is still on clearance racks or on the floor below the racks and didn't go even at 80%+ off. If the liquidators thought it was hard to clear a Kmart clothing department in a liquidation sale, they haven't seen anything yet.

reymann
Silver Member
Silver Member
Posts: 157
Joined: August 13th, 2014, 8:25 pm
Been thanked: 1 time
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by reymann »

the liquidators will likely gobble up jcpenney. the stay-at-home orders pretty much sealed their fate.

storewanderer
Valued Contributor
Valued Contributor
Posts: 5902
Joined: February 23rd, 2009, 3:54 pm
Been thanked: 17 times
Contact:
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by storewanderer »

I think it will take longer. This JCP chain seems to have a way of hanging on, a lot longer than it should.

If they don't take swift action in bankruptcy the end may come sooner. If they do the right thing and close 1/2 of their stores immediately they be able to somehow salvage the other half. They also need new management immediately, again. Entire house cleaning of executives and buyers specifically. At this point I'm not even sure how many people are out there who know how to run a mid market department store chain, most of the good executives and buyers are probably long retired at this point. It was pretty clear bringing in someone from Apple, someone from a home improvement chain, and now someone from a fabric store chain was not the answer. Beyond that, they really need to look hard at which stores they've modernized and which they haven't and keep the nicer stores. This seems to be a common mistake in bankruptcy where chains will get rid of the (more expensive) nicer/newer stores and keep the (cheaper) old stores. But a bankrupt company has no money to modernize its stores, so that cycle will ensure you won't make it.

SamSpade
Veteran Member
Veteran Member
Posts: 960
Joined: September 13th, 2015, 4:39 pm
Has thanked: 56 times
Been thanked: 3 times
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by SamSpade »

If this becomes more widely reported, it won't help their cause.1
The bankruptcy announcement comes after J.C. Penney announced in a regulatory filing that it paid big-dollar bonuses to multiple executive officers after it announced it furloughed the majority of its hourly store associates.

As part of the deal, Soltau received $4.5 million, and separate $1 million were also awarded to Bill Wafford, executive vice president and chief financial officer, Michelle Wlazlo, executive vice president and chief merchant, and Brynn L. Evanson, who is also an executive vice president and the chief human resources officer.

Hasn't Michelle Wlazlo only been there a few months?

storewanderer
Valued Contributor
Valued Contributor
Posts: 5902
Joined: February 23rd, 2009, 3:54 pm
Been thanked: 17 times
Contact:
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by storewanderer »

SamSpade wrote: May 15th, 2020, 11:18 pm If this becomes more widely reported, it won't help their cause.1
The bankruptcy announcement comes after J.C. Penney announced in a regulatory filing that it paid big-dollar bonuses to multiple executive officers after it announced it furloughed the majority of its hourly store associates.

As part of the deal, Soltau received $4.5 million, and separate $1 million were also awarded to Bill Wafford, executive vice president and chief financial officer, Michelle Wlazlo, executive vice president and chief merchant, and Brynn L. Evanson, who is also an executive vice president and the chief human resources officer.

Hasn't Michelle Wlazlo only been there a few months?
This is common practice with a company goes bankrupt. It is an effort to retain the executives. It is one last trip to the cookie jar before the creditors take over and have to approve all of the expenses. It probably also helps compensate them for the stock options in their old compensation packages that are going to become worthless in the Chapter 11 Reorg. What started a couple decades ago as $100,000 or $200,000 payments to keep key people on during wind downs has morphed into this. Oh of course these executives say this is a reorg not a wind down and they are "essential" and "key" to successfully reorganizing the company. Yeah okay, we will see how that goes in the future. Not going to explicitly argue on the merits of if this type of payment structure is right or wrong but it is how things work. Perhaps the tone of my wording here works to show my feelings.

jamcool
Diamond Member
Diamond Member
Posts: 426
Joined: March 5th, 2009, 10:27 pm
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by jamcool »

Yet Sears still goes on, like a zombie on The Walking Dead.

TW-Upstate NY
Gold Member
Gold Member
Posts: 237
Joined: May 11th, 2009, 6:09 pm
Been thanked: 6 times
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by TW-Upstate NY »

Currently if I read correctly, JCP has a store base of 846. If say half of them close as suggested, that brings them down to a little over 400, realistically can they compete on a national level? I'm going to flat out say it-no they can't. Hate to see another icon leave the scene but at this point that's the only reasonable outcome. Just end it-please don't become the laughingstock Sears and K-Mart have turned into.

Super S
Valued Contributor
Valued Contributor
Posts: 1907
Joined: April 1st, 2009, 9:27 pm
Has thanked: 4 times
Been thanked: 9 times
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by Super S »

TW-Upstate NY wrote: May 16th, 2020, 8:48 am Currently if I read correctly, JCP has a store base of 846. If say half of them close as suggested, that brings them down to a little over 400, realistically can they compete on a national level? I'm going to flat out say it-no they can't. Hate to see another icon leave the scene but at this point that's the only reasonable outcome. Just end it-please don't become the laughingstock Sears and K-Mart have turned into.
One big difference though is that Sears and Kmart are not in it for the money. It has become very clear that they exist just to line Lampert's pockets. They aren't even trying to stay relevant any more. JCPenney at least has been trying things, with that said, they have a long road ahead and might not survive this. They do need to improve staffing at the store level and improve their presentation by keeping the stores more organized. Some of the standalone stores they built were a step in the right direction, but the products are nothing special and often overpriced. And reducing store count doesn't help their buying power any.

If JCPenney does disappear, we are going to see many malls that were great performers just a few short years ago find themselves in real trouble as many of them already have recently vacant Sears spaces, and in some cases others.

veteran+
Veteran Member
Veteran Member
Posts: 558
Joined: January 3rd, 2015, 7:53 am
Has thanked: 30 times
Been thanked: 7 times
Status: Offline

Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by veteran+ »

I am not sorry to see Kmart go. I have mixed feelings about Sears. They should be buried along with Lampert.

I am sorry to see JCP go. My Mom was a buyer back in their better days but there were signs even back then that perhaps was a warning. Their executives started to behave in arrogant ways that filtered down into the entire company. Corporate hubris ALWAYS has consequences.

Seems that we will be left with the Marshalls, Ross, TJ Max, H&M (substandard quality), Dollar Generals of the world to shop at or forced to buy online (can't stand that).

I'm just not good at hunting and bargain shopping and sifting through chaotic messes like Ross, et al. (with zero to little customer service). I admire people that can. I know this does not serve me well because it is what it is and it seems that it is the way it will continue to develop.

Guess I'm gonna have to learn or find some friends to help me out...........LOL

Post Reply