Tuesday, 16 April 2013

J.C. Penney $850 million: Failed overhaul has company hunting for cash

J.C. Penney $850 million: Failed overhaul has company hunting for cash, Talk of a J.C. Penney $850 million withdrawal is trending across top news headlines this week, as Bloomberg News reported this Monday, April 15, that J.C. Penney has indeed taken almost $100 million out of its revolving credit capacity in a new “cash hunt" of sorts.

Following the failed overhaul of the previous CEO of J.C. Penney, new Chief Executive Officer Myron Ullman wants to turn the popular company’s finances around, added Reuters this week. According to the report, the J.C. Penney $850 withdrawal is a major attempt of Ullman’s to bolster the company’s overall liquidity.

The drawdown on the literally billion dollar credit line is allegedly going to be used in order to help restock inventory materials and for capital spending expenditures while J.C. Penney works to open brand new departments this May.

The J.C. Penney $850 million headline also came to be following the company aiming to increase its capital while selling its debt. Of course, even with CEO Ullman’s new plans, it won’t be an easy business venture.

“Mike Ullman has his work cut out for him in terms of reassuring suppliers, landlords and employees that J.C. Penney is going to be a going concern,” said Alex Fuhrman, an analyst for Piper Jaffray Cos. in New York. “The company has enough liquidity to make it through the end of this year, but next year is really more of the issue.”

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