Course Research Paper
The recent pandemic has impacted the economy, people, and businesses. These issues
with the coronavirus pandemic have led to many employees losing their jobs and businesses
having to file for bankruptcy. J.C. Penney was one of the many well-known companies that had
to seek relief by filing for Chapter 11 bankruptcy.
J.C. Penney first opened on 14 April 1902 in Kemmerer, WY, where their first store was
called, “The Golden Rule.” Over the decades to come, J.C. Penney became one of the largest
retailers in the U.S. with over 850 stores and almost 85,000 employees. After the pandemic hit,
J.C. Penney had a $105 million dollar debt payment, $300 million dollars of annual interest
expenses, and more than $2 billion of debt due in 2023. Furthermore, after J.C. Penney fought
for more finances from its creditors, it ended up not winning. The pandemic resulted in the
company drawing out of $1.25 billion dollars from its recovering credit line, which led to its
bankruptcy preparation.
J.C. Penney had a downfall from their first CEO Ron Johnson renovations he made
within the company. He received a lot of backlash from customers from his elimination of
coupon usage which decreased the company sales. He was later replaced by Chief Executive, Jill
Soltau who tried to salvage the issues Johnson created and bring the company focus back to an
affordable family company. “Before the pandemic, J.C. Penney hoped to persuade creditors to
give it more financial breathing room, as Soltau tried to forge a turnaround focused on the
company’s roots as a seller of affordable apparel for middle-class families.”
