JC Penney to get $1.75B in financing

[Omaha Steve]

Source: AP-Excite

PLANO, Texas (AP) - J.C. Penney on Monday confirmed that Goldman Sachs will provide it with $1.75 billion in financing.

Rumors about the financing had begun to circulate Friday.

The five-year senior secured term loan can be used to fund the company's operations as well as pay off some of its debt. It will be secured by real estate, as well as an interest the company's other assets and some of its subsidiaries.

J.C. Penney has been burning through cash. Earlier this month, it said it would draw $850 million from its $1.85 billion revolving credit line to pay for replenishing inventory, particularly for its overhauled home area.

FULL story at link.


Read more: http://apnews.excite.com/article/20130429/DA5V800O1.html

[thelordofhell]

1. In related news........

J.C. Penney has announced new Upper Management bonuses of 1 billion dollars.................

[JDPriestly]

2. And they had a great marketing concept but did not adequately advertise or explain it to consumers.

[AndyA]

3. JCP needs to get back to the basics it had once mastered

They used to sell very nice, affordable, ready made draperies. They had lots of sizes and colors, and they were in stock in the store, so you could walk out with them. Not so much anymore.

The last few times I've been in a JCP store, it was difficult to find help, and when I did, they couldn't really help.

Rule number one for making money: you have to sell stuff to customers. You can't do that without people available to ring them up, answer their questions, and get what they want out of the back room so they can buy it.

Rule number two: You have to have stuff in the store to sell.

I heard that got rid of the last idiot running the company into the ground, and replaced him with someone with a better understanding of what JCP used to be. Hopefully, they will turn it around.

[Berlin Expat]

4. Ron Johnson, the

'last idiot' you referred to, was trying to turn JCP into Apple.

Not going to work; an interesting idea, but it simply doesn't appeal to JCP's core consumer base.

Hopefully, JCP can turn it around - a classic American retailer, and to be honest, I'd hate to see them bite the dust.

[xtraxritical]

5. And just last week Warren Buffet bought a significant J.C. Penny's position.