J.C. Penney draws on borrowings available under revolver

By Rebecca Melvin

New York, March 31 – J.C. Penney Co. Inc. said it is using funds available under its revolving credit facility and taking other actions to improve its cash position and financial flexibility during the Covid-19 pandemic, according to a company release.

Other actions include furloughing the majority of its store hourly associates and cutting its corporate workforce, deferring capital spending, reducing receipts, and extending the terms for payment of goods and services.

The company announced the measures at the same time it said that it will be extending temporary closure of its stores and business offices.

Beginning April 5, the majority of associates in the company’s home office, in Salt Lake City, and at its Soho design offices will be furloughed, along with its store salaried associates. Many of the company’s associates in supply chain and logistics centers were previously furloughed on March 20, and those furloughs will continue. The company’s eCommerce distribution centers and customer care will remain open.

The apparel and home furnishings retailer is based in Plano, Texas.

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