Posted on 05/15/2020 6:39:31 PM PDT by struggle
No, retailers can generally survive the first Chapter 11. The international bankers swoop in, offer DIP financing, and get control. They then squeeze it dry and the second filing in a couple of years wraps things up.
In this case, Penny’s is likely to be able to limp along for a few more years.
Like I said....
L
Whats the gay thing with jcp. I thought the were a dfw company
> 85,000 jobs would be hard to replace currently. Hopefully the company can save a majority of them. <
A friend of mine worked full-time for Penney for 20+ years. Then one day they fired him. He was replaced by two lower-paid, part-time workers
I suppose that made good business sense. But it was not an honorable thing to do.
They always need to clarify the *type* of bankruptcy.
Chapter 11 means reorganization. Lots of businesses go through C11 and emerge intact.
Chapter 7 means liquidation. That’s it. All the company assets are sold off, including all its physical stuff, its trademark name, patents and copyrights.
I agree about Pennys. The days of the long term, well trained and motivated employee might be gone. Those two replacement employees are in a class that’s going to get hurt most in this debacle though.
they have had a string of very very bad decisions for the last 20 years and probably even before that.
Thanks.
I was going to ask if they were reorganizing or folding. I don’t blame them for taking the chance to reorganize. Hopefully they come out of it stronger. I hate seeing people lose jobs even if I disagree with some of their employers social/political positions.
not just that.
their whole haphazard retooling of the stores was just awful.
theyd run commercials about how the new stores would look, the various zones and stores areas within the store
and then people went to their local penneys
and it hadn’t yet been updated at all and still smelled like 1970s mothballs and yellowish orange carpeting and paint
The company has been underwater for sometime. Very similar to Sears, Kohl’s and Macy’s.
It’s amazing they made it this long. They’ve been circling the bowl for years.
they were very late in the game to use internet sales. and then they never really had a wonderful site to use. pretty much as bad as sears’ internet experiences were.
Not before doing this!....
JCPenney Awards Top Execs With $1 Million-Plus Bonuses Days Before Potential Bankruptcy Filing
https://www.yahoo.com/lifestyle/jcpenney-awards-top-execs-1-140339201.html
I used to buy shoes and shirts from JCP, but their quality started going downhill several years ago. Cheap leather and glue in the shoes and the sleeves had smaller and smaller diameter.
He started remodeling their stores in 2012 when they were in the red. What kind of idiot throws money into decorating stores where nobody is shopping?
A series of unfortunate decisions from hiring the apple exec, to advertising miscues, and finally letting a hedge fund manager dominate the business doomed JCP.
They forgot their core customer base.
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