J.C. Penney Bankruptcy Could Affect Connecticut Stores: Report

CONNECTICUT — The venerable retailer J.C. Penney Co. is preparing to file for bankruptcy, perhaps as soon as next week, as the new coronavirus continues to take a toll on bricks-and-mortar retailers, Reuters reported. The report said the department store chain will close permanently about 200 of its 850 stores, but it’s unclear if the Connecticut stores will be included.

In Connecticut, J.C. Penney stores are located at:

• Danbury Fair Mall, 7 Backus Avenue, Danbury
• Trumbull Parking Park, 5065 Main Street, Trumbull
• Brass Mill Center, 525 Union Street, Waterbury
• Torrington Commons, 251 High Street, Torrington
• Westfarms Mall, 300 Westfarms Mall, Farmington
• Shoppes @ Buckland, 344 V Buckland Hills Drive, Manchester
• Crystal Mall, 850 Hartford Pike, Waterford

The 118-year-old chain based in Plano, Texas, was struggling before the business shutdowns associated with the pandemic. The company has about $4 billion in debt and has been edged out of the marketplace by e-commerce companies and discount bricks-and-mortar stores, Reuters said.

As J.C. Penney navigates bankruptcy proceedings, the company is working with creditors for a "debtor-in-possession loan," the Reuters report said.

J.C. Penney would be the third major retailer to seek bankruptcy protection since the pandemic began. The J.Crew Group filed for bankruptcy earlier this month. Neiman Marcus furloughed 14,000 employees and temporarily closed 43 stores, and said last week it was turning its business over to creditors who provided the company with $675 million in financing to continue operations.

» Read the full J.C. Penney report on Reuters.