J.C. Penney files for bankruptcy as coronavirus pushes retailer over edge

Fox Business ^ | May 15 2020 | James Leggate

[dfwgator]

Heck, i’m at the point where I want to get rid of things, rather than accumulate new things.

[Spktyr]

I’m sure of it, just like watching Sears implode, which it was doing long before COVID-19 appeared in China. Look at prior threads here on FR about JCP, how they continued to screw up over the course of the last decade and how they were continually shuttering stores. COVID-19 isn’t why JCP failed, it’s just an excuse.

As for the rest of your post, that is a completely separate topic that has nothing to do with JCP’s excuses.

[Spktyr]

I’m nowhere near 50 and I’ve been dumping more stuff than I’ve been buying of late. Starting with the albatross known as a Ford Bronco.

[Rock N Jones]

Respectfully disagree!
As I frequently drive by the mall in this area where I dwell where there is a Penny location there has been not one car parked in the parking lot. The Cash Flow of all the stores inside surely is as empty as the parking lot. Belly up for all them is in the cards if Lockdown continues much longer.

Retail Sales Dive 16.4% Amid Coronavirus Lockdown, JCPenney May File For Bankruptcy
https://www.investors.com/news/economy/retail-sales-april-dive-coronavirus-lockdown-amazon-surge-dow-jones-falls/

[Spktyr]

Malls have been dying anyway. Coronavirus only brought it forward.

https://time.com/4865957/death-and-life-shopping-mall/

https://www.businesstimes.com.sg/real-estate/as-us-malls-struggle-thriving-ones-spend-millions-to-reinvent-themselves

https://www.afr.com/property/commercial/shopping-malls-are-dying-even-with-million-dollar-makeovers-20191126-p53e8e

https://www.forbes.com/sites/christopherwalton/2019/09/27/malls-are-dying-but-theres-a-3-step-plan-that-can-save-them/#15e416531595

More discussion here: https://www.reddit.com/r/deadmalls/comments/8yvk8k/i_dont_understand_why_the_malls_are_dying/

Prior fashion store bankruptcies caused by same stupidity that got JCP: https://www.thefashionlaw.com/retail-woes-a-bankruptcy-timeline/

[Rock N Jones]

“Coronavirus only brought it forward”

That’s the point. The Lockdown brought it on! Throughout the country small businesses are affected by the Lockdown and that could possibly cause an economic meltdown if it continues.
Whether or not Penny will survive remains to be seen. And there’s lots happening these days that apparently will result as a catalyst for colossal change, like drone delivery, 5 G, artificial intelligence etc. How it plays out remains to be seen. And the concerns that wealth will be redistributed, first-ever trillionaire, Jeff Bezos? And the poor guy out there in the boonies like me!

[Spktyr]

No, the lockdown didn't. They were already screwed before then. They were already on their way to bankruptcy when COVID-19 massively disrupted their supply chain. No merch to sell means you have no sales.

Further, even the stores in areas where there was no lockdown had no customers - so if there's no lockdown and nobody is shopping at your store, what does that tell you?

Here's their historical performance. They stopped paying dividends right around the time they went ALL THE GAY ALL THE TIME:

Their stock price dropped off yet another cliff back in January, long before the lockdown.

They have been bleeding cash for years.

The lockdown didn't bring this on. It was inevitable and all the lockdown did was move up the timeline a little. This is the case with an awful lot of other legacy retailers too.

[Rock N Jones]

Sorry my crystal ball says they may have survived without the aid of the Bankruptcy Court save for the lockdown. But of course the weak companies in deep whatever are the first trees that fall.

[Spktyr]

They were following the same arc that Sears did. Pretty sure they were going to be gone this year at any rate.

Related reading: https://www.businessinsider.com/dollar-general-tj-maxx-could-struggle-in-covid-19-world-2020-5?r=rr

Retailers: No online presence? Poor online presence? Prepare to enter bankruptcy.

[treetopsandroofs]

Who else will sell LGTBSA/GSA uniforms?

[mewzilla]

Update...

Mall owners and lenders to buy bankrupt J.C. Penney