May 15, 2020 - Economy & Business

JCPenney files for Chapter 11 bankruptcy

JCPenney files for bankruptcy

The parking lot in front of a JCPenney store at The Shops at Tanforan Mall on May 15, in San Bruno, California. Photo: Justin Sullivan/Getty Images

JCPenney filed for Chapter 11 bankruptcy protection on Friday, following prolonged store closures amid the coronavirus pandemic.

Why it matters: This is the third major brick-and-mortar retail bankruptcy of the month, after J.Crew and Neiman Marcus, but by far the largest. The 118-year-old department store has 846 locations that employed around 90,000 people.

What they're saying:

“The Coronavirus (COVID-19) pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country. As a result, 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 in a statement
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