J. C. Penney Company, Inc. (NYSE:JCP) going through tough times

Posted by sara Frank June 25, 2013 0 Comment 1414 views


J. C. Penney Company, Inc. (NYSE:JCP), is one of the nation’s largest and leading apparel and home furnishing retailer. The company is undergoing through a transformation phase in order to be the preferred retail destination for unmatched style, quality and value. The company has recently diversified itself into an entirely new Home store launching some exciting new products and exclusive attractions from various other brands.

The company has set on wheels for its Home store department. They offer a wide range of renovation techniques which includes upgraded flooring, accent lighting, customized fixtures and a widened pathway to create an inspiring environment.

The company seems to be a long term bankruptcy candidate due to the decline in its profit and sales since 2010. J.C. Penney has recently taken a term loan of $2.25 billion from Goldman Sachs Group, Inc. to fund its capital expenditures and operating losses. J.C. Penney will be hooked on for annual interest payments of $135 million against the term-loan. The debt seems to bring in stability for the company rather than being a solution to the challenges the company is undergoing.

Ron Johnson was appointed as the CEO of the company two years ago in order to transform J.C. Penney because the department store concept was going stale and the financial results were remarkably declining. In the last year of CEO Mike Ullman’s was brought back as the CEO, and the company posted a downfall of 0.2% comparable store sales.

The external environment has not improved since then and the company has lost more than $1.5 billion before taxes last year. Moreover, J.C. Penney’s performance has shown a consistent decline till date. It is expected that the sales will improve and losses will narrow later this year, but the company’s full-year loss will most probably be the same as 2012 results.

During the previous day’s trading session, the stock declined by 3.08% and closed at $15.42.

 


About sara Frank

Sara Frank is our chief congressional correspondent, Sara has covered the presidential campaign, Congress and congressional campaigns. Prior to that, she covered the U.S. House. Sarahas also worked covering the House, Senate and campaign finance. Among the numerous honors she has received for his reporting, Sara is the recipient of an Emmy Award from The National Academy of Television Arts and Sciences. She was also nominated four times for a national Cable Ace Award.

View all post by sara Frank Visit author's website

Write Your Comment