JC Penney have avoided having to file for bankruptcy after paying $ 17 million in interest on a line of credit this Friday. Rumors of the bankruptcy of the company had caused the suspension of its trading on Wall Street, but once the price recovered, its shares shot up 21 by the end of the session.
The payment of this line of credit had expired on May 7, but it was granted a five business day grace period. After saving this 'match ball', the American chain of commerce stores has indicated that it will continue to consider its alternatives to continue reducing its high debt.
The bankruptcy plan envisaged permanently closing about 25% of its nearly 850 stores, according to Reuters. The Texas-based company with 118 years of history employs almost 85,000 people. The loan could total $ 400 million to $ 500 million, according to some sources.
This is how he has managed to border bankruptcy, but he will have to continue fighting to survive. And the economic context is not the most favorable, with a 16.4% drop in retail sales April in the United States, the biggest drop in its history. This figure is above the estimates of the experts, who expected a drop of 12.3%.
Total spending fell to $ 404 billion, and the biggest collapse came from buying clothes and accessories, which plummeted 89.3% from the same period last year. In general, retail trade experienced a drop of 15.1% compared to March and a drop of 17.8% compared to April 2019.