US 100-Year-Old Retailer Also Bankrupt Due to COVID-19... JC Penney Files for Bankruptcy

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As consumption sharply contracted due to the novel coronavirus disease (COVID-19) crisis, JC Penney, a U.S. retail company with over 100 years of history, has filed for bankruptcy protection.

According to foreign media including The New York Times (NYT), on the 16th (local time), JC Penney, a U.S. mid-range department store chain boasting 118 years of history, entered bankruptcy proceedings. JC Penney submitted a bankruptcy protection petition under Chapter 11 of the U.S. Bankruptcy Code to the Southern District of Texas federal bankruptcy court the day before. It is reported that the company has been unable to pay a total of $29 million (approximately 36 billion KRW) in matured bond interest since last month.

Founded in 1902 by James Cash Penney, JC Penney was one of the representative department store chains in the U.S. alongside Macy's and Kohl's, once operating as many as 2,000 stores, making it a massive retail chain. However, in recent years, the rise of Amazon in the online retail sector intensified management difficulties, and the COVID-19 crisis further worsened the business situation drastically. JC Penney closed 850 stores and laid off 85,000 employees due to the COVID-19 crisis.

As the COVID-19 crisis continues, concerns over a wave of bankruptcies in the U.S. retail industry are growing. This month alone, Neiman Marcus, a luxury department store with a 113-year tradition, entered bankruptcy proceedings, and the well-known mid-range clothing brand J.Crew also filed for bankruptcy.

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