Connect with us

Top News

JCPenney filed for bankruptcy – CNN

Published

on

JCPenney filed for bankruptcy - CNN

The company said it had agreements with most lenders regarding a settlement plan that would allow it to stay in business as a financially healthier company, but would include the closure of 846 stores that had not been announced previously. As part of the settlement process, JCPenney arranged to borrow an additional $ 450 million from lenders to pay for operations during the reorganization.

The company blamed the Covid-19 pandemic because of the need to file for bankruptcy.

“Until this pandemic strikes, we have made significant progress in rebuilding our company under the Renewal Plan strategy – and our efforts have begun to bear fruit,” said CEO Jill Soltau. “Implementing this financial restructuring plan through a court-supervised process is the best way to ensure that JCPenney will build more than 100 years of its history to serve our customers over the coming decades.”

JCPenney is the fourth national retailer to file for bankruptcy this month. On May 4, clothing retailer J.Crew filed for bankruptcy, followed by a filing at Neiman Marcus on May 7. May 10th Stage Store (SSI) file for bankruptcy.

How the mighty has fallen

The history of JCPenney began in 1902 with its first store in Kemmerer, Wyoming. It grew into one of the major national retailers, anchors many suburban shopping centers along with rivals such as Sears Macy’s. (M.) who find themselves facing their own struggles today. JCPenney reached its peak in 1973, when it operated more than 2,000 locations throughout the country.
Today, JCPenney has 85,000 employees, making the company among the largest US retailers to file for bankruptcy in recent years. It has more stores in the US than other troubled companies like Sears, Toys “R” Us or Sports Authority To do when they file.
JCPenney has been struggling under a mountain of debt and red ink for a decade. But the past 10 years have been filled with mistakes one after another, as the door swung around in executive leadership bringing him four different CEOs. Radical changes intended to revive companies – including ending coupons and selling permits in an effort to capture more high-end buyers, and introducing household appliances – proved to be a spectacular failure that was quickly canceled.
But the company also struggled with the decline in all department store sectors. More consumers shop online than directly, and JCPenney too battered by the growth of large discount boxes like Walmart (WMT), Target (TGT) and Costco (COST), which gives buyers lower prices and choices of items not found in department stores, such as food.

JCPenney’s most profitable year was 2010, and its net loss has reached $ 4.5 billion since then.

See also  Judo. Portuguese Jorge Fonseca is number one in the world ranking up to 100 kg.

Since the summer of 2011 he has reported net income in only five quarters, all in the holiday shopping season – he cannot make money without increasing sales. Since early 2011, JCPenney has closed more than 20% of its stores while cutting more than 40% of its staff.

Despite the history of mistakes and the industry trends that oppose them, there are signs of hope recently at JCPenney before this crisis.

In November, when the new holiday shopping season was about to begin, losses shrank in the third quarter, and raised earnings forecasts, even as sales continued to fall.

“We are making significant progress in our efforts to return JCPenney to sustainable and profitable growth,” Soltau said in a statement at the time.

But that optimism proved to be short-lived, as net income dropped 64% in the fourth quarter, which included the holiday shopping season, and the company announced another round of store closures.

This is the Covid-19 company that has the most impact – and at least

The corona virus pandemic eventually bankrupt the company. Sales at department stores across the industry plummeted 47% in April, while clothing store sales plummeted 89%, according to government figures reported Friday. Like other retailers, JCPenney announced on March 18 that it closed shops and fired its employees during the crisis. Currently it can only reopen 41 stores for shoppers, less than 5% of the total.

In addition to cutting almost all of JCPenney’s income, it makes future prospects for troubled retailers far more bleak.

See also  China's own records debunk 'historic rights' over disputed seas | News

“The pandemic recession is … accelerating the shift of consumers towards online retailing,” said Kalinda Ukanwa, assistant professor of marketing at Marshall University of Southern California Business School.

JCPenney has a long-term debt of $ 3.6 billion in its books on February 1. Although much of the debt will not be due until next year, the company revealed on April 15 that it had missed debt payments that day. It said it was looking at strategic options available during the 30-day grace period before being assessed in the debt default. On May 7, he missed another debt payment, and this one came with only a week’s grace period. But instead of defaulting on the loan, he made the payment on May 14, giving him an extra day before deciding whether to file for bankruptcy or not.

The retail sector is problematic

Filing a company bankruptcy does not always mean that JC Penney will go out of business. Many companies use this process to reduce debts and other obligations that they are unable to do when closing operations and unprofitable locations. J.Crew and Neiman both intend to stay in business. But Stage Store said it plans to permanently close all nearly 800 of its small department stores if it cannot find buyers during the bankruptcy process.

But this is a unique time for retail bankruptcy filing. Many stores are closed due to quarantine and orders remain at home, and many potential buyers are restless wandering to open stores.

Retailers often use store closure sales to liquidate inventory and collect the money they need to fund operations during bankruptcy reorganization, said Reshmi Basu, a retail bankruptcy expert at Debtwire, which tracks the finances of troubled companies. It only makes it harder for companies to survive the bankruptcy process. Many retailers enter bankruptcy who intend to stay in business but fail to do so.

UBS analysts said on Monday that “the closure of retail stores will accelerate in the post-Covid-19 world” and that the gap between well-positioned retailers and struggling chains will develop due to the outbreak.

See also  The Best Espresso Machines for Home 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top News

Portuguese traveling the world on a minimoto will meet Ramos Horta on Timor – Observer

Published

on

Portuguese traveling the world on a minimoto will meet Ramos Horta on Timor – Observer

The young Portuguese, who has been traveling the world on a mini-motorcycle since 2020, will arrive in Timor-Leste on Monday and meet with the country’s president, the motorcyclist said on Wednesday.

With a residence in Oliveira de Azemeis, in the Aveiro region, and starting his journey in Avis, in Portalegre, André Souza left Portugal on July 12, 2020 to try for a world record, and since then he has driven over 55,000 kilometers through 40 countries, always on a Honda Monkey 125 with nine horses and a height of 70 centimeters.

The 26-year-old is currently based in Darwin, Australia, and it was there that he met two United Nations lawyers who, after working for several years in Timor and personal with Jose Ramos Hortarecognized in the Portuguese trip the type of gamble that would have interested the current president of Timor, the 1996 Nobel Peace Prize laureate.

This friendly couple took care of everything, connected us, and now it was agreed with Ramos Horta’s adviser that I would meet with the president on August 23, although without a motorcycle, which leaves Australia only by boat on the 24th and will not be. arrive on time to appear in the photo,” says Andre Souza Luce from Darwin.

THE PUB • CONTINUE TO READ BELOW

The absence of a car at an official meeting does not prevent the motorcyclist from admitting with satisfaction: “Once I realized that I could drive Timor, it became a dream. I wanted to get to know the country that was a former Portuguese colony, and especially I wanted to get to know Ramos Horta for everything he did for the independence of this land.”

See also  Selection records the golden page of Portuguese futsal history

Initiallypassage through Timor was not planned in the Ride That Monkey project, but became part of the scenario when the direction of the trip had to be changed to get around the fact that in mid-2020 most international borders were still closed or severe mobility restrictions were imposed due to Covid-19.

The idea was to go directly from Europe to Asia, but I had to change the direction of travel and start from America. That is why now, being in Australia and so close to Timor, I decided to go there and through Indonesia before heading to Malaysia and Thailand, ”explains the Portuguese.

Myanmar, India, Pakistan, Iran, Turkey and “some countries in North Africa” ​​are the next destinations, so travel effectively cross “all the continents of the globe” before returning to Portugal scheduled for May or June 2023.

Meanwhile in Darwin, Andre Sousa continues to recover from injuries sustained in his back after he was hit by a truck in California, USA, which left him there for two months. The problem was alleviated with physical therapy and required regular medication, but the pain worsened in Australia after several days of consecutive desert crossings between Cairns and Darwin, covering a total of 2,500 kilometers.

A young Portuguese man traveling the world on a mini-motorcycle is injured in the US.

I had to lie in bed for a week, completely motionless, and now I am accompanied by a chiropractor who has already offered me three consultations for $ 110 each as support for the project,” emphasizes Andre Souza.

The motorcyclist also notes that the trip turned out to be “much more expensive than expected”, due to the difficulties associated with the pandemic and unforeseen health problems. The accident in the United States, for example, involved two months of commercial residence in the Beverly Hills area, where “the simplest hamburger cost at least 10 euros” and, just to transport a motorcycle and driver from Santiago de Chile to Sydney, “the cost was 6000”, in addition to the cost of “a number of documents” that the Australian authorities require when crossing from Darwin to Timor.

See also  Pelosi defends endorsing Joe Kennedy in Democratic most important

Facing these and other budget changes was only possible thanks to the sponsors of the project and the “donations and support of many different people from all over the world” – as in the case of a Portuguese family that this week welcomes André Sousa to Darwin and 40 subscribers from different countries who donated 50 or 100 euros in exchange for having their name engraved on the minimoto’s fuel tank.

In the next stages of the journey through Asia and Africa, “there will be even more bureaucracy”, but in order to reduce the cost of accommodation and food, the young man will strive to circulate through areas where Portuguese emigrants live what they can get. André Sousa admits that he was welcomed mostly by foreigners, but he does not hide his preference: “I always like to stay with the Portuguese. They do everything they can to help me and make my life easier, and when we’re together, it’s like coming home for a while.”

Continue Reading

Top News

″We are not at the time when the Portuguese come here and discover football″

Published

on

″We are not at the time when the Portuguese come here and discover football″

The writing

Abel Ferreira has already earned some criticism from Cookie, and now the tone has especially risen after a conference with Atlético Goianiense coach Jorginho.

In Brazil, they continue to discuss Abel’s trip to the locker room in the quarter-final match against Libertadores. Jorginho, the coach of Atlético Goianiense, who has already criticized the Portuguese coach, explained what would happen if the Brazilian team’s technical leader showed the same behavior.

“If a Brazilian coach went into the dressing room to listen to music during a penalty kick, he would be called a coward. But when he wins, nothing happens, everything is right,” he said in press statements.

Jorginho raised his tone and delivered a more general criticism of the Portuguese coach, recalling that football had already been invented in Brazil and that the reigning two-time South American champion had a tougher job ahead of him.

“Abel is a very good coach, period. The question of his abilities is not discussed. It is discussed, especially in this situation, that he did not discover football. football! What happened to Jorge Jesus was extraordinary, what happens to Abel too, but that’s because they have a team like Flamengo and Palmeiras. I want to see him do what he does here at Atlético Goianiense. Come here to become the champion of Brazil,” he explained.

See also  China's own records debunk 'historic rights' over disputed seas | News

Continue Reading

Top News

Francisco J. Marques: “It seems that the evil of Portuguese football is the behavior of the FC Porto bank…” – FC Porto

Published

on

Francisco J. Marques: "It seems that the evil of Portuguese football is the behavior of the FC Porto bank..." - FC Porto



Dragons Communications Director Thinks Judges Are Overzealous

Francisco J. Márquez once again criticized the strict actions of the refereeing teams against the FC Porto bank, especially Sergio Conceição, citing as an example what happened in Wiesel compared to what happened in Casa Pia Benfica. The Communications Director of FC Porto considered it an exaggeration how the referees penalize the banks. “The strange thing is what is happening, it seems that the evil of Portuguese football is the behavior of the banks, especially FC Porto. It’s a bit strange that after two days of announcing the new recommendation, this so-called zero tolerance is limited to the Porto FC bench, when in the Casa Pia Benfica game we saw the reaction of the Benfica bench. I think it’s nothing to worry about, it’s normal in any championship, but with zero tolerance for these people should be warned. In the case of a yellow card, Sergio Conceição in Wiesel, the rules were strictly observed because he left the technical area, one can warn with a yellow card, but how many times the coaches leave the technical area “Jorge Jesus played on touch line as if he were a full back I admit that Sergio Conceição left a little technical area but this whole situation does not make sense, let’s hope that common sense will prevail and not force unnatural behavior There are players, coaches and managers who live the game intensively, there are different views on the game, I think that what is happening is a clear exaggeration and this needs to be edit,” Francisco J. Marquez said in an interview with Porto. Channel. .

By appointment


6

leave your comment

Continue Reading

Trending