J.C. Penney issued a statement Thursday denying a report of challenges gaining funding to support merchandise delivery. On Wednesday, the New York Post said CIT Group, the largest factoring firm, “abruptly” ceased financing deliveries to the department store chain from some suppliers.
In its statement, J.C. Penney said the report “is untrue” and Penney “has been told so directly by CIT,”
The company added, “CIT continues to factor and support deliveries from JCPenney suppliers. JCPenney continues to have the support of all of its key vendors, who have maintained their shipments to the company.”
Penney said CIT “factored” merchandise currently represents less than 4 percent of its overall inventory for the year. It added that it continues to have ample liquidity to manage its business with expectations to close the quarter with approximately $1.5 billion in cash on its balance sheet.
Shares of Penney had declined 10 percent Wednesday on the New York Post report.
