You Can Still Shop at JC Penney ๐Ÿ›

Table of Contents

You Can Still Shop at JC Penney!

JC Penney has filed for bankruptcy protection after more than a century of high street history, but you can still shop there. JC Penney is restructuring its debt and securing another $900 million to keep the lights on. It will close further stores and reduce debt as an immediate priority, and then look to launch an unlikely long-term comeback.

The company will be gone for good unless its operating business improves, not something investors are predicting. The stock is worth nothing. If the business flash-sold assets and liquidated tomorrow, the entire proceeds would be spread among debt-holders. Itโ€™s a sad state of affairs, especially for a former blue-chip champ like JC.

The brick-and-mortar department store was hot when mass car ownership was hot because people took pride in driving to places. You saw malls go up everywhere, and JC Penney was anchoring them down. The store attracted footfall with its stylish clothing range and home furnishings. It was a family-store, a big employer, and investors made ten times their money on its shares from 1980 to 2000!

The problems came when Sam Waltonโ€™s Walmart started gaining market share. JC Penney was losing ground before the advent of e-commerce. When it faced online competitors making shopping less expensive and more transparent, its response was to stand still. It ended the only couponing scheme that drove traffic to its stores.

This was a bankruptcy waiting to happen, but shorting it would’ve been a trap. These types of companies donโ€™t go down instantly; they often die very slow deaths. The short-seller can be hit with spikes in stock price whenever these companies beat expectations and show any signs of life, so itโ€™s not easy investing.

Itโ€™s possible for a JC Penney to secure new credit facilities and prolong its life span by years, so while you may eventually get a payday, there are chunky borrowing costs to take the short position in the first place, and then numerous threats of a turnaround that can make it a painful wait. JC Penney remains in this exact state of limbo. Dare to touch it?

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visaยฎ Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.