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.
Sears filed for bankruptcy this week, and its owner, Eddie Lampert, is warning employees that absent "material progress over the next few months," the fate of the company is going to be "a shutdown and liquidation."
The bottom line: There are good bankruptcies, which discharge legacy debts and allow the company to continue anew. And then there are bad bankruptcies, which cut off supply chains and result in outright liquidation. Bad bankruptcies inevitably result in thousands of job losses — and Sears is looking like it's going to be one of them.