Latest news with #Bankruptcy
Bloomberg
15-07-2025
- Business
- Bloomberg
Recovery From Distressed Debt Swaps Beats Bankruptcy, Fitch Says
Distressed debt exchanges have been delivering better average outcomes for lenders compared to bankruptcies, according to a Fitch Ratings report. Such swaps have yielded an average recoveries of between 77.8% and 92.8%, according to Fitch, which analyzed transactions from 2024 through the first quarter.
Daily Mail
26-06-2025
- Business
- Daily Mail
JCPenney announces HUNDREDS of staffers will lose jobs in latest closing
Nearly 300 workers will be losing their jobs now that JCPenney is preparing to shutter Alliance Supply Chain facility in Texas. The struggling department chain will be closing the warehouse and begin its first round of layoffs on August 1, lasting until August 14. It will start the second round on November 1, which is scheduled to end on November 14. The warehouse will close for good in the same month. 'JCPenney is always seeking ways to adapt and enhance our operations with the goal of providing a better experience for our customers,' the company told 'After a thorough review of our organization, we've made the difficult decision to close our JCPenney Alliance Regional Logistics Center.' The chain has informed all affected employees of the decision and has offered them severance, benefits, and transition resources. The latest layoffs come a month after JCPenney shuttered seven stores in California, Colorado, Idaho, Kansas, New Hampshire. North Carolina, and West Virginia. Even though about 650 stores are still running, the brand has found it hard to bounce back from its 2020 bankruptcy filing. The chain's profit losses became noticeable in 2011, and worsened during the COVID-19 pandemic. JCPenney was forced to file for bankruptcy protection with $5 billion in debt and began closing 30 percent of its stores as part of a restructuring plan. Despite its bankruptcy exit in December 2020, the chain shuttered around 192 stores in 2021, and closed another 50 a year later. The previous closures, along with its upcoming warehouse shutdown, is meant to 'build a stronger, more competitive company,' according to JCPenney. Not including credit card sales, JCPenney finished 2024 with $6.3 billion in sales, an 8.6 percent decline compared to the year prior. It also suffered a $177 million loss in net sales, which came 'despite some reasonable cost control on general expenses.' JCPenney is fighting through its financial struggles, even launching exclusive lines created in collaboration with Ally Brooke, Dwayne Wade, and Gabrielle Union. While its collaborations may have helped with sales, the company's revenue fell over 9 percent to $2.09 billion during its fourth quarter, ultimately resulting in a $64 million net loss. JCPenney is one of many retailers that has left shoppers concerned over its future. Macy's is in the process of shuttering 66 locations this year after announcing its plan to close 150 stores by 2026. Once the planned closures are complete, the luxury retailer will only be operating 350 stores. Torrid, a once-popular mall staple, is set to close up to 180 stores following its sharp drop in sales. Other closures that left shoppers stunned include Saks' Union Square store and Neiman Marcus' downtown Dallas location. The struggles were too severe for chains such as Forever21 and Hudson's Bay to handle, resulting in total store closure.
