JC Penney Files for Chapter 11 Bankruptcy

The Guardian: JC Penney Files for Bankruptcy

Probably not going to come as a surprise to many who read this site, or, those who have stepped foot in a JC Penney in the last few years.

It has been seven years since JC Penney fired Ron Johnson, the former Apple exec and pioneer of the Apple Store & Genius Bar, after their attempt to get younger and more stylish failed.

Remember Nick Wooster? The ditching of codes, promos and sales in favor of everyday low prices? The move to “jcp” from JC Penney?

That was a very, very long time ago.

Seems like that return to their base didn’t work. At least not long term. First there was J. Crew, who has been accused of getting too fashion-y, too fast, breaking under the weight of current stressors. JC Penney tried to get hip, but failed, and went back to the coupon cutters. That didn’t work either.

Would that it twere so simple.

And then there’s this:

Days before seeking bankruptcy protection, JC Penney paid nearly $10m in bonuses to top executives. The company said it was “taking necessary steps to retain our talented management team”. – The Guardian

As part of the plan, Jill Soltau, chief executive officer (CEO) of the company received $4.5 million. Separate payments of $1 million were also awarded to Bill Wafford, executive vice president and chief financial officer, Michelle Wlazlo, executive vice president and chief merchant, and Brynn L. Evanson, who is also an executive vice president at the company as well as chief human resources officer. – The Hill

Those are not the best optics.

JC Penney said they’ll continue operations, but they also said they’ll close some(?) stores “in phases.” They also said they have $500 million in cash on hand, and existing debt holders have pledged an additional $900 million to meet “operational and restructuring needs.”

That’s gonna be quite the list of… “needs.”

JC Penney was founded 118 years ago in Kemmerer, Wyoming.

Way back in the Nick Wooster days