J.C. Penney’s (JCP) future truly hangs in the balance.
A source familiar with the situation tells Yahoo Finance all options remain on the table for the overly indebted retailer, including a full liquidation as a means to better satisfy creditors. The source says J.C. Penney continues to evaluate all options after a debtor-in-possession loan — known as DIP funding — of around $450 million fell through last weekend.
Lenders may be balking on providing J.C. Penney funding to keep its business open during a run through bankruptcy and ultimate resurrection, given years of losses and a dim outlook for the department store industry.
A spokesperson declined to comment on whether J.C. Penney is looking at a liquidation.
Up to this point, reports have had J.C. Penney filing for bankruptcy and closing up to 200 stores. The chain would emerge with more than 600 stores open and far less debt.
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