J.C. Penney ‘could file for bankruptcy TODAY’ as retailer offers millions in bonuses for top execs
J.C. PENNEY could file for bankruptcy as early as today - but has just paid out millions in bonuses to keep bosses "motivated".
The ailing department store chain - which employs 90,000 staff - is struggling under a $4bn debt mountain and missed two payments in April and May.
Bosses are negotiating with creditors and are reported to be preparing a bankruptcy filing that could come on Friday morning, according to reports.
Its advisers are working on a plan that could see while under chapter 11 bankruptcy protection.
But as the company teeters on the brink, top executives have been handed huge "retention bonuses".
CEO Jill Soltau received $4.5million while chief financial officer Bill Wafford, chief merchant officer Michelle Wlazlo and chief human resources officer Brynn Evanson each got $1 million.
The firm has been negotiating a $450million loan to finance the bankruptcy but may have to wait until a June 2 court hearing to draw from the funds, sources said.
J.C. Penney is set to follow Neiman Marcus, Stage Stores and as victims of the coronavirus pandemic, which forced retailers to shut their doors.
But the 118-year-old department store chain was already suffering before the lockdown, with sales falling every year since 2016.
Sales last year were down to a third of the company's peak in 2001.
It has struggled to compete with online retailers and bargain chains like TJ Maxx.
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