( Reuters) – J.C. Penney Co Inc ( JCP.N) requires to leave personal bankruptcy proceedings in simply a matter of months to endure the unmatched monetary pressure of prolonged store closures due to the COVID-19 pandemic, an attorney for the iconic U.S. department store chain said during a court hearing on Saturday.
” This company needs to move incredibly rapidly through this restructuring. If we don’t, the results might be devastating,” said Joshua Sussberg, a Kirkland & Ellis LLP legal representative representing the seller. He revealed a timeline that anticipates the business consenting to a company strategy with lending institutions by July 15 otherwise putting itself up for sale.
J.C. Penney, which declared bankruptcy on Friday, has begun reopening a few of its more than 800 stores in phases, but concerns stay that customers may be sluggish to return amid health issues and task losses not seen considering that the Great Depression. It plans to close many shops completely in the weeks ahead.
Even throughout less-fraught times, numerous retailers, including Barneys New York Inc and Toys ‘R’ Us, have stopped working to restructure under bankruptcy security and failed for excellent.
The concern for J.C. Penney’s precarious position was echoed by U.S. Insolvency Judge David Jones, who approved the company’s demands to continue paying workers and suppliers delivering merchan