US retailer JC Penney files for bankruptcy as lockdowns take toll
Iconic American department store chain JC Penney filed for bankruptcy on Friday as coronavirus-related lockdown measures took a toll on the company that was already experiencing financial troubles.
The 118-year-old department chain announcement comes as the US Commerce Department announced a historic 16.4-per-cent drop in retail spending in April.
In a statement on Friday, JC Penney said it will start closing some of its approximately 850 stores in phases.
The company employs around 90,000 people.
Retailers that were in the midst of financial woes pre-pandemic are now experiencing heightened crisis as consumer spending takes a nosedive.
Along with JC Penney, fashion retailer J.Crew and luxury goods store Neiman Marcus have declared bankruptcy during the pandemic.
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“The American retail industry has experienced a profoundly different new reality, requiring JCPenney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company,” CEO Jill Soltau said in a statement. (dpa)
