The 118-year-old department store JCPenney is the latest to file for bankruptcy protection amid the coronavirus pandemic.
The Texas based retailer has accrued nearly $4 billion in debt and will now transfer control to its lenders to restructure the company and reduce its financial obligations.
The popular one-stop-shop filed for chapter 11 bankruptcy. It isn't planning on going out of business.
The company says it will welcome customers back at select stores that are reopening as lockdowns are scaled back in some regions. It will continue to fulfill online orders as usual.
CEO Jill Soltau said in a statement, "This team has continued to innovate even during these challenging times, implementing substantial improvements to our flagship eCommerce platform to increase efficiency and ensure our loyal customers continue to have access to the products they need through elevated shopping experiences."
JCPenney was struggling well before the pandemic began. But the pandemic has forced retailers to close stores nationwide and furlough hundreds of thousands of employees. Meanwhile, many shoppers have turned to online retailers over walk-in stores.
Earlier this month, the preppy clothier J.Crew also filed for Chapter 11 protection. The company, with more than 500 stores, is $2 billion in debt.
Contains footage from CNN.
