JC Penney Files For Chapter 11 Bankruptcy Protection

[BillyGr]

Yep....so many of my friends do the same thing and legitimately boast about the deals they find.

For me....I just don't like the time I would have to spend. I have gone on shopping trips with them and the hunting and pecking and the disheveled conditions (almost all locations) drove me crazy. Even Steinmart is annoying but neater.

The online experience for me has not been good for a plethora of reasons. But more and more I feel pressured to conform to this way. Variety at store level seems to be diminishing more and more.

I know I'm in the minority..............maybe I need a brainwash.....lol.

Tell them they should all thank you when they find deals - after all, if everyone only bought the deals the stores wouldn't be able to have so many of them. They need the more profitable non-deal sales to offset the minimal (or no) profit from some of these specials and clearances they offer.

[cjd]

I think the closest Macy's to me is in Orlando, haven't been up there in a few years. There is a Dillard's about 45 minutes away, I made a quick daytrip up that way back in January while I was on vacation, mostly just wanted to see what a Kohls is like but I stopped in there too. Didn't buy anything though. Don't really need any clothes right now, rather I need to get rid of a lot. lol

[veteran+]

Yep....so many of my friends do the same thing and legitimately boast about the deals they find.

For me....I just don't like the time I would have to spend. I have gone on shopping trips with them and the hunting and pecking and the disheveled conditions (almost all locations) drove me crazy. Even Steinmart is annoying but neater.

The online experience for me has not been good for a plethora of reasons. But more and more I feel pressured to conform to this way. Variety at store level seems to be diminishing more and more.

I know I'm in the minority..............maybe I need a brainwash.....lol.

Tell them they should all thank you when they find deals - after all, if everyone only bought the deals the stores wouldn't be able to have so many of them. They need the more profitable non-deal sales to offset the minimal (or no) profit from some of these specials and clearances they offer.

Never thought about that but you are CORRECT!!

lol

[marshd1000]

Looks like Amazon is kicking the tires at JC Penney:

https://www.foxbusiness.com/markets/ama ... lks-report

[storewanderer]

In another example of how screwed up JC Penney is, they are saying they will not complete the announced 242 store closures for more than a year.

Uhh, will the company even still be in business a year? If they are lucky the company should already be through a Chapter 11 restructure and out of this in a year.

What are they thinking stringing out the closures like this? They need to get the closures done and dump/break the leases BEFORE they exit Chapter 11. Exactly how long do they plan to stay in Chapter 11? Normally you try to get out of that as fast as you can because all the fees associated with it really add up fast.

When you go into bankruptcy you announce closures of non-performing stores and you close the stores, all of them, ASAP to get cash and get those bad stores out of your portfolio.

So now you have 30% of the store base wondering if it will be closing, but not even knowing until... next year? Way to build morale.

Meanwhile their CEO is saying their turnaround plan was working and everything was derailed by the Coronavirus. Really now? Same store sales were terrible last year, even worse than other department store chain peers. The stores look terrible. They have been overstocked with horrible looking clothing that is not selling, nor are they aggressively marking down (it'll be a hard sell even at 90% off), for most of 2019 and into 2020, especially in women's clothing. It was highly rumored the chain would fall into bankruptcy before the Coronavirus mandated business restrictions were imposed. This is flat out denial of the company's condition and the mentality internally is so broken and not with reality that it is unbelievable.

We will see if anything comes of the Amazon rumors.

[Super S]

In another example of how screwed up JC Penney is, they are saying they will not complete the announced 242 store closures for more than a year.

Uhh, will the company even still be in business a year? If they are lucky the company should already be through a Chapter 11 restructure and out of this in a year.

What are they thinking stringing out the closures like this? They need to get the closures done and dump/break the leases BEFORE they exit Chapter 11. Exactly how long do they plan to stay in Chapter 11? Normally you try to get out of that as fast as you can because all the fees associated with it really add up fast.

When you go into bankruptcy you announce closures of non-performing stores and you close the stores, all of them, ASAP to get cash and get those bad stores out of your portfolio.

So now you have 30% of the store base wondering if it will be closing, but not even knowing until... next year? Way to build morale.

Meanwhile their CEO is saying their turnaround plan was working and everything was derailed by the Coronavirus. Really now? Same store sales were terrible last year, even worse than other department store chain peers. The stores look terrible. They have been overstocked with horrible looking clothing that is not selling, nor are they aggressively marking down (it'll be a hard sell even at 90% off), for most of 2019 and into 2020, especially in women's clothing. It was highly rumored the chain would fall into bankruptcy before the Coronavirus mandated business restrictions were imposed. This is flat out denial of the company's condition and the mentality internally is so broken and not with reality that it is unbelievable.

We will see if anything comes of the Amazon rumors.

You have to be able to open the stores in the first place to hold a liquidation sale. That isn't going to occur until the Coronavirus stuff subsides. Pier 1, which has announced that all of their locations will close, is in the same boat.

[storewanderer]

You have to be able to open the stores in the first place to hold a liquidation sale. That isn't going to occur until the Coronavirus stuff subsides. Pier 1, which has announced that all of their locations will close, is in the same boat.

Maybe this is the issue. The liquidation companies may not want to run liquidations right now... stores are being allowed to reopen in many states. Kohl's here in NV reopened today; limited hours 11 AM to 7 PM.

[babs]

In another example of how screwed up JC Penney is, they are saying they will not complete the announced 242 store closures for more than a year.

Uhh, will the company even still be in business a year? If they are lucky the company should already be through a Chapter 11 restructure and out of this in a year.

What are they thinking stringing out the closures like this? They need to get the closures done and dump/break the leases BEFORE they exit Chapter 11. Exactly how long do they plan to stay in Chapter 11? Normally you try to get out of that as fast as you can because all the fees associated with it really add up fast.

When you go into bankruptcy you announce closures of non-performing stores and you close the stores, all of them, ASAP to get cash and get those bad stores out of your portfolio.

So now you have 30% of the store base wondering if it will be closing, but not even knowing until... next year? Way to build morale.

Meanwhile their CEO is saying their turnaround plan was working and everything was derailed by the Coronavirus. Really now? Same store sales were terrible last year, even worse than other department store chain peers. The stores look terrible. They have been overstocked with horrible looking clothing that is not selling, nor are they aggressively marking down (it'll be a hard sell even at 90% off), for most of 2019 and into 2020, especially in women's clothing. It was highly rumored the chain would fall into bankruptcy before the Coronavirus mandated business restrictions were imposed. This is flat out denial of the company's condition and the mentality internally is so broken and not with reality that it is unbelievable.

We will see if anything comes of the Amazon rumors.

I don't buy the Amazon rumor. I don't believe they have any interest in it. The mall locations would be lousy for fulfillment purposes and Amazon has been building so many warehouses, I don't think they need to use mall space for warehousing. As for opening them up as retail stores, WHY??? Their model works. Whole Foods was a fresh grocery play but this I don't get.

[storewanderer]

I don't buy the Amazon rumor. I don't believe they have any interest in it. The mall locations would be lousy for fulfillment purposes and Amazon has been building so many warehouses, I don't think they need to use mall space for warehousing. As for opening them up as retail stores, WHY??? Their model works. Whole Foods was a fresh grocery play but this I don't get.

I'm with you. I think this is bull, and wishful thinking. It was probably started up by JCP because the company seems to have a very interesting culture that thinks very highly of itself and never accepts responsibility or blame for its failures.

If Amazon wanted JCP, why in the heck did they not express interest until AFTER the bankruptcy filing? The chain has been on the ropes for a while. I think it is a bogus rumor.

I mean, there are things of JCP that could be of value to Amazon, like some of the private label brands I guess. But I also think Amazon could effectively develop its own brands. Does anyone really even seek out JCP private label clothing anymore? The quality has gone far downhill in the past decade and there is no reason to seek a JCP private label garment out over any other private label garment at this point.

Multi level 40 year old mall buildings won't work for warehouse fulfillment. Malls are often located in "central" locations (read: congested traffic)- not really the place for a warehouse type operation with trucks coming and going all day and all night.

Really if this rumor is true I wonder about the intelligence of Amazon...

[reymann]

i wonder if amazon just wants jcpenney's real estate and not the actual brick and mortar store. covid is going to speed up the death of the indoor malls. more shopping malls could begin making plans to redevelop their malls as outdoor shopping centers and amazon could simply just be interested in the real estate of jcpenney in the event of redevelopment.