Boston, MA 10/18/2013 (wallstreetpr) – The rumor that the ailing retail store J.C. Penney Company, Inc. (NYSE:JCP) has hired a bankruptcy attorney is just the latest among growing odds for the company. And if recent events involving JCP are anything to go by, it appears that the mandarins at the retail store have run out of ideas to resuscitate the company.
Nobody has admitted giving up on trying to help the once towering retail giant rediscover its footsteps. But it’s all but clear that a lot of things are not adding up. And investors are leaving in droves, so the shares are heading south faster than expected. The company’s shares continued to decline into Thursday, shedding around 1.55% by 3.15 p.m. EDT.
In the past months, JCP has had a really torrid moment on the browsers. Things have not been made better with analytical views that the retail company is more into debts than ever thought. When the company announced in September that it was cutting its year-end cash in reserves to $1.3 billion from $1.5 billion, it succeeded to convince investors that it was really cash starved and troubled.
Today it’s not the question of whether JCP is ailing or not, but the question is whether the company can survive to witnesses the trading of the 2014 holiday season.
JCP is reported to be more into the red with up to $5.82 billion in accumulated debt. This means that the company cannot raise the funds that it badly needs through the debt route. Perhaps this explains the logic behind the company’s 84 million fresh common stock offering at the tickers value of $9.65 per share with the express aim to raise $1 billion or at least $800 million.
Sales have been flagging at the JCP, so much so that over the past 12 or so months, the company has only reported $12.11 billion in sales and a loss around $1.6 billion.
