The retail store chain JC Penney recently announced that it will close 154 stores. The closures are part of their first phase after filing for bankruptcy. Last month, the retail giant filed for bankruptcy, unable to cope with the shutdowns brought about by the coronavirus. It is now the largest retailer to file for bankruptcy since the coronavirus shutdowns began.
JC Penney is Not Alone in Filing Chapter 11 Bankruptcy
Neiman Marcus and J. Crew have also filed for bankruptcy. All of these popular stores became laden with debt and were not able to quickly connect with shoppers online in time to increase their profits enough. JC Penney will also permanently close almost a third of its 846 stores within a two-year time frame, leaving only 600 locations throughout the United States.
On June 11, 2020, JC Penney will attend a hearing with the U.S. Bankruptcy Court for the Southern District of Texas, located in Corpus Christi. The judge is expected to enter the order resulting in store closings. The stores are expected to engage in liquidation sales. They will sell off as much stock as they can and apply that money to debts.
JC Penney hopes to come out of its Chapter 11 bankruptcy as well as the coronavirus pandemic as a stronger retailer. They hope to gain greater financial flexibility, according to their chief executive officer. The company will continue to operate the majority of its stores including its online store to make sure that customers can access their product.
Is Your Los Angeles Business Struggling? You Might Want to Consider Bankruptcy
Large corporations are not the only ones filing for bankruptcy. Many Los Angeles businesses will likely join in filing for bankruptcy. If you are struggling during this difficult time as a business owner, knowing that you have options can be helpful. Many people assume that bankruptcy is too overwhelming.
In many cases, filing for bankruptcy is the best possible option, however. It will give you the ability to restructure your debts. There are no debts that the bankruptcy considered nondischargeable. The court will issue an automatic stay of judgment, giving you freedom from creditors who are harassing you at your business and home.
As a business owner, you will still be able to operate your business before, during, and after your bankruptcy. You will also be able to partially pay back your unsecured debts. Most of all, filing for bankruptcy can give you time to take a breath and create a strategy that will benefit you and your business going forward.
Contact an Experienced Chapter 11 Bankruptcy Lawyer Today
At Bankruptcy Law Center, we understand how difficult it is to own a business, especially in these unpredictable times. If you are considering filing a Chapter 11 bankruptcy, we would love to speak with you. One of our dedicated and skilled legal representatives will evaluate your case and help you find a way forward. Contact our Los Angeles bankruptcy law firm today.