J.C. Penney is reportedly exploring debt restructuring options, hoping to turn things around for its money-losing business.
Before its total debt of roughly $4 billion comes due in the next few years, the retail giant - struggling with dwindling margins – seems to be trying to ameliorate the situation as much as it can. Citing sources familiar with the matter, CNBC reported that J.C. Penney has hired advisers for figuring out options on debt restructuring.
The company is looking for ways to raise additional cash and/or negotiate with creditors to extend debt maturities, as indicated by the report. J.C. Penney is apparently determined to take steps in coming months to try and avoid confronting a potential bankruptcy filing.
Having faced intense competition from discount retailers and e-commerce giants, J.C. Penney is grappling with financial losses that have collectively exceeded $1.7 billion between 2014 and the first three months of this year.
In May, the retailer reported that sales at stores open for at least a year declined more than expected during the first quarter, while its net loss almost doubled to -$154 million.