These are tough times for JCPenney. A day after falling below $1 for the first time since it started trading in 1929, JCPenney stock fell 8% on Thursday to close at 97 cents a share.
The 110-year old company hasn’t been profitable since 2010 and its prospects are bleak. JCPenney (JCP) is $4 billion in debt with a junk credit rating, a sinking cash hoard and no sign of a turnaround.
With few shoppers coming to stores, JCPenney faces inventory and supply chain struggles and no clear marketing plan or strategy. The company has been forced to offer steep discounts on clothing to clear its massive inventory glut.
Last month, JCPenney reported a $151 million third-quarter loss and a 5.4% drop in sales. The stock has fallen 68% this year and nearly 30% in December alone.
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