J.C. Penney Files For Chapter 11 Bankruptcy
As widely expected by investors and retail sector experts, J.C. Penney (NYSE: JCP) has filed for Chapter 11 bankruptcy protection.
The troubled company, already hobbled by the retail apocalypse consuming the sector in recent years, was dealt a crippling blow by the SARS-CoV-2 coronavirus outbreak. The filing was announced after market close on Friday.
The following day, J.C. Penney said that the "first-day motions" it made in relation to the bankruptcy filing had been approved. First-day motions are requests to the court for the affected company to be allowed to pay selected creditors in order to continue its operations. According to the retailer, these approvals will allow it to continue paying wages and certain benefits to employees, and to pay vendors.
Source Fool.com
