J C Penney Company Inc (OTCMKTS: JCPNQ) is currently the top most traded stock in small caps running up the charts and trading huge volume. As small cap speculators know, Q stocks can be highly volatile once traded on the bb’s and many of them have seen enormous moves. So far JCPNQ is proving no exception.
JCPNQ stated last week they plan on closing 154 stores in the near future as part of its “store optimization strategy” after filing for bankruptcy protection last month. The closings are slated to begin after a June 11 bankruptcy hearing in Texas.
J C Penney Company Inc (OTCMKTS: JCPNQ) is an American department store chain with 846 locations in 49 U.S. states and Puerto Rico. In addition to selling conventional merchandise, JCPenney offers large Fine Jewelry departments, The Salon by InStyle, and Sephora inside JCPenney.
Most JCPenney stores are located in suburban shopping malls. Before 1966, most of its stores were located in downtown areas. As shopping malls became more popular during the later half of the 20th century, JCPenney followed the trend by relocating and developing stores to anchor the malls. In more recent years, the chain has continued to follow consumer traffic, echoing the retailing trend of opening some freestanding stores, including some next door to competitors. Certain stores are located in power centers. The company has been an Internet retailer since 1998. It has streamlined its catalog and distribution while undergoing renovation improvements at store level.
To find out the inside scoop on JCPNQ Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
Penney’s sales, which totaled over $10 billion in the most recent fiscal year, have fallen each year since 2015, and it hasn’t made an annual profit in nearly a decade. The recent bankruptcy filing comes as the Company skipped two interest payments in recent weeks. The 118-year-old Penney is the latest American retailer to seek bankruptcy protection as the rise of fast-fashion, off-price chains like T.J. Maxx and e-commerce giants such as Amazon.com Inc. win over younger shoppers.
In May J C Penney filed a Chapter 11 petition for the reorganization of the company and entered into a restructuring agreement with lenders holding roughly 70% of a portion of the company’s debt. “The coronavirus (COVID-19) pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country,” J.C. Penney Chief Executive Jill Soltau said in a statement. “As a result, the American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company.” The company said it would continue operations and that it had $500 million in cash as of the Chapter 11 filing date. It also said that it had received commitments for $900 million of debtor-in-possession financing from its existing debt holders. The company expects the money will be sufficient to meet its operational and restructuring needs. As part of its reorganization, J.C. Penney said it planned to close stores in phases, the first of which it will announce in the “coming weeks.”
“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” Chief Executive Jill Soltau said, according to a company statement.
We have a Monster Pick Coming. Subscribe Right Now!
Currently the most active stock in small caps JCPNQ is making significant moves up the charts as many Q stocks do. The Company said last week they plan on closing 154 stores in the near future as part of its “store optimization strategy” after filing for bankruptcy protection last month. The closings are slated to begin after a June 11 bankruptcy hearing in Texas. We will be updating on JCPNQ when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with JCPNQ.
Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!
Disclosure: we hold no position in JCPNQ either long or short and we have not been compensated for this article