Jul 22, 2019

JCPenney stock sinks under $1 after debt restructuring reports

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Data: Investing.com; Chart: Axios Visuals

Shares of embattled retailer JCPenney fell 17% on Friday after a Reuters report that the company had hired advisers to help restructure its debt in the latest effort to stave off bankruptcy. 

Background: The stock fell 18 cents to close at 90 cents a share. It has traded near $1 since 2018.

What they're saying: JCPenney said in a statement that it "routinely" hires external advisers and that it has not hired advisers to prepare for a court restructuring or bankruptcy.

What they're not saying: The company has roughly "$4 billion in debt coming due in the next few years, with more than $1.5 billion currently available under a revolving credit line, according to SEC filings," CNBC reported.

Go deeper: The death of department stores

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Barneys files for bankruptcy and plans to close most of its stores

Photo: Drew Angerer/Getty Images

Luxury retailer Barneys New York filed for bankruptcy Tuesday and plans to close most of its 22 stores, securing a $75 million loan plan to keep it afloat until it can find a buyer, the Wall Street Journal reports.

Why it matters: The chain had difficulty adapting to the e-commerce shift, which has seen a host of competitors without brick-and-mortar locations gain prominence, and said it had faced increasingly high rent at many of its locations, though it plans to keep its flagship store in Manhattan open for now.

Go deeper: 7 major retailers have filed for bankruptcy in 2019

House votes to suspend debt ceiling through 2021

Illustration: Aïda Amer/Axios

The House voted 284-149 on Thursday to pass a budget that suspends the debt ceiling through 2021 — allowing the government to borrow money for 2 more years — and raises spending caps by about $320 billion.

The big picture: The federal debt exceeded $22 trillion in February and the Congressional Budget Office projects it to reach "unprecedented levels" over the next 30 years if current laws go unchanged. The federal deficit has grown 23% this fiscal year. Thursday's deal passes the buck on the next federal debt showdown until after the 2020 elections.

Go deeperArrowJul 25, 2019

Facebook beats earnings, reports new FTC antitrust probe

Photo: Thomas Trutschel/Photothek via Getty Images

Facebook's stock was up nearly 4% in after-hours trading Wednesday after the company beat investor expectations for earnings, user growth and revenue.

Yes, but: The positive earnings were accompanied by several pieces of bad news.

  • Facebook announced that the Federal Trade Commission told it in June that the agency had opened an antitrust investigation into the company. 
  • It also will set aside $2 billion, on top of $3 billion set aside last quarter, to pay a historic $5 billion fine that the FTC officially levied on the company today.
Go deeperArrowJul 24, 2019