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Fool Podcasts. New Ventures. Search Search:. Daniel B. Kline TMFDankline. Jun 25, at AM. Author Bio Daniel B. My wife shopped in the Ladies , and Children Depts. She found everything that she was looking for at great prices. I bought a winter coat and some sweaters.
You can not buy quality clothing at these prices at any other store. J C Penney is weil on in its journey to profitability. Good luck to all the Longs and I am sure we will get great news on this Quarter and the end year Lets hope that Allen Questrorm will be back as Chairman. Reply Replies 7. FedEx has the right idea regarding the CEOs pay FedEx Corp. The Memphis-based delivery company said it would tap debt markets to bolster reserves as the pandemic slams its higher-profit business-to-business shipments, while driving up demand for low-margin home deliveries.
Reply Replies 3. Penney Company, Inc. On an unshifted basis, comparable sales decreased 5. Additionally, JCPenney will initiate three preliminary store closings this spring as part of an ongoing evaluation of its store portfolio occurring over the next few months, which includes assessing locations that may not meet required financial targets or represent a market opportunity to capitalize on a beneficial real estate asset.
Further information related to future store closings will be shared on Feb. Sanity is returning. Some thoughts on the debt restructuring or lack thereof so far. Generally parties holding debt in companies are more inclined to negotiate debt when there is question as to whether or not the debt can be paid back. With the notes trading between. I believe this is why we haven't heard anything as of yet. If the debt was trading at. The company on the other hand reached out over 3 years before this debt is due to try and push it out farther and maybe get some better terms.
We do not have our backs up against the wall and will not give away a lot, which may be what they're asking for. Don't forget the company has been, and guided this year again, to be FCF positive for the year.
It costs the company M a year to service the debt alone. This is the best case scenario in my opinion. A look in the mirror: Image source: J. Penney has some new management, and the company is reducing its bloated inventory and selling off some assets. That's helping the cash flow situation, but it's ultimately a band-aid on a deep wound. Comparable sales dropped 3. Free cash flow was positive, but only because of asset sales. How does J. Penney come back from this? I have no idea.
It's facing better-run department stores, online retailers, specialty apparel sellers, and discount stores like Target that have been rolling out a bunch of private-label clothing lines, all against the backdrop of an upheaval in the retail industry that's already claimed iconic retailers like Sears and Toys R Us.
With J. Penney doing so poorly now, the next recession could be the company's death knell. Absolutely everything must go right for J. Penney to survive. Looking for more retail coverage? Click here to read all retail news and updates. Maria Halkias , Staff writer. She has chronicled the stark changes in grocery, malls, e-commerce, major bankruptcies and local retail entrepreneurs.
Get the latest on openings, closings and trends of the D-FW retail scene. By signing up you agree to our privacy policy. Stand with us in our mission to discover and uncover the story of North Texas. More from Homepage. Penney filed for bankruptcy. In essence, traders appear to be doing one of two things. So do yourself a favor and stop speculating with JCP stock. For common shareholders, this thing is worthless.
Look no further than Hertz NYSE: HTZ , who was on the verge of bankruptcy but had enough of a spike in its stock price that the company is now planning on issuing shares to help pay off creditors. After seeing what happened with HTZ stock, traders are piling into JCP stock on the hopes that other traders will follow suit. Buy the stock at 20 cents. Sell it at 25 cents. Sounds easy enough, right?
It is. Until this game of the greater fool ends. At the end, the greatest fool will be holding a bag of JCP shares that, ultimately, are worthless.
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