The world economy is in turmoil due to the Corona coup. Many companies around the world have announced layoffs. Some have stopped paying employees. No one is being forced to shut down the company. The 116-year-old US chain department store JCPenny is on the verge of bankruptcy due to Corona's push. They have already filed for bankruptcy. This information was reported in the BBC online report.
JCPenny sells clothing, cosmetics, and jewelry at more than 850 locations across the United States. About 80,000 employees work in this company.
JCPenny filed for bankruptcy protection under Chapter 11 last Friday. The application sought permission to restructure the company even though it could not repay the loan.
Earlier last month, the luxury department store J Crew filed for bankruptcy protection. In April, news broke that JCPenny was bankrupt because he could not pay the interest. A month later that news is going to come true.
The company said in a statement that it had 500 million in cash. In addition, it has received another 900 million in financial commitments from lenders. They have already closed a few stores.
"The coronavirus epidemic has created unprecedented challenges for our families, our loved ones, our community, and our country," said Jill Solta, the company's chief executive.
Many companies are closing stores because of the large number of retailers across the United States. From March to April, retail sales in the country fell to a record of 16.4 percent.
The company was founded in 1902 in the state of Wyoming by James Cass Penny. Prices should be low and fixed, he believed in this principle. The company has survived the Great Depression of 1930. They were doing very good business in the twentieth century. However, due to the introduction of online shopping, Jesse Penny fell into a lot of trouble. They have been forced to close many stores in the last few years. Many workers were even laid off. Last year, they sold 10.7 billion, which is 7 billion less than the average income of the last 10 years. And this year they are going bankrupt due to the impact of the coronavirus epidemic.