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JCPenney Company

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JCPenney Company financial performance

The JCPenney Company is an American store chain that has more than 649 branches in the USA. The JCPenney Company expects additional phases characterized by the closing of sales as it remains focused on its plans for renewing and maintaining a sustainable and profitable expansion. The company has been working towards turning her chains fortune around. However, it still seems to head to an out-of-money situation (“J.C. Penney company profile,” 2020). The retailers have over $4billion in debenture and $1.7 billion in liquidity, although most of it is revolving in the credit line. The firm has been endeavoring to get more access to finances and push out most of its loans’ maturity ion.

In the year 2020, the firm operated at losses of $-268 million despite the $115.6 million sales revenues. This s Isa drop from the sales revenues of the year 2019, which amounted to $120.9 million the firm’s profits have declined from $1 million in 2017 to $-116 in the year 2018 and $-255 in 2019 and the alarming losses of $-268 million in the year 2020 (“J.C. Penney company profile,” 2020) . Some of the arguments attached to the firm’s deteriorated efficiency of performance include that the company lacks cash and focused mechanism c on competing against giant rival firms in the sector. The firm closed more than 141 stores in the last year and eight more this year, with hundreds left facing significant financial challenges. Without a test of the shopper’s reactions, the firm altered its advertisement, logo, and the designs of the stores, and to the s worst, its pricing models (Meyersohn, 2018). This move was aimed to make the retail businesses more palatable to the wealthy only to lose the loyalty and trust of most of its customs. With the firm stock prices falling below $2, the company witnesses more significant damage to its balance sheet with its financial t restructuring mechanisms beating minimal fruits.

References

J.C. Penney company profile. (2020, May 17). Retrieved from https://fortune.com/company/j-c-penney/fortune500/

Meyersohn, N. (2018, September 27). How it all went wrong at JCPenney. Retrieved from https://edition.cnn.com/2018/09/27/business/jcpenney-history/index.html