J.C. Penney Bankruptcy Could Affect Southcenter Mall: Report

RENTON, WA — Retailer J.C. Penney Co. is planning to file for bankruptcy, possibly 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 Southcenter Mall's store will be one of the stores on the chopping block.

The 118-year-old chain based in Plano, Texas, was struggling even before the pandemic forced the retailer to shutter their stores. The company has about $4 billion in debt and has been edged out of the marketplace by online retailers 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 coronavirus outbreak began. The J.Crew Group filed for bankruptcy earlier this month, and Neiman Marcus 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.