J.C. Penney has hired advisers to help it explore options to restructure its debt, according to a report from Reuters late Thursday.
Penney is exploring options “that could include raising additional cash or negotiating with creditors to push out debt maturities,” Reuters reported, based on people familiar with the matter.
While J.C. Penney has more than $1.5 billion available under a revolving credit line, investors have continued to sell off the retailer’s shares in response to financial losses. Its credit rating is deep in junk territory, increasing its borrowing costs.
Penney’s debt stands at $3.83 billion, down $480 million from a year ago, but the retailer is facing some difficult turnaround years and needs to shore up its finances well ahead of large debt payments in 2023 and 2024.
