Is JCPenney At Risk Of Filing For Bankruptcy? - ATL Law 404-800-4001
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Is JCPenney At Risk Of Filing For Bankruptcy?
Things are not looking up for JCPenney, as of this weekend, the CEO and Chief of Sales decided to close 27 stores, nation wide, that had been under performing in the last year. In the last 2 years, we have seen numerous large retailers file for bankruptcy, and some not return from it, the biggest being Sears of course. Malls have been greatly suffering; both Sears and JCPenney have always been the storefronts of every mall around the nation, along with Dillards. We can only guess how much longer a store like Dillards can tread water before they file as well. So what’s next for JCPenney? Will one of the biggest retailers in the world still be around in the next 5 years? Keep reading to find out more.
Why is JCPenney At Risk of Bankruptcy?
To put it bluntly, JCPenney has been struggling for quite some time, just about as long as Sears. However, they’ve managed to just scrape by due to their change in direction towards higher – middle tier clothing lines and brands. This was and is the current trend in clothing; “name-brand.” However, the problem may not necessarily lie in JCPenny, but in fact the location of all of them; shopping malls. Shopping Malls have seen a HUGE decline in the last 10 years, by nearly 65%. It is estimated that shopping malls won’t even exist by the year 2025, with the current rate of Amazon’s sales and expansion, maybe even sooner. JCPenney locations that exist independently or in Outlet Malls perform at a much higher rate, which is a location that Sears could never truly establish itself in.
What will happen to JCPenney in the next 5 years?
The likeliness that JCPenney liquidates the whole company is actually not as big as you may think. The chance that they move almost entirely to online sales and Outlet Malls is very high, just like any other big name brand clothing company like Ralph Polo Lauren or Nordstrom Rack.
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