As part of a bankruptcy deal, retailer J.C. Penney will permanently shutter approximately 242 of its stores.
The company, which was founded in 1902, will trim its store numbers to around 604 locations, according to Reuters, leaving just the most profitable stores remaining.
Reuters reports J.C. Penney may also explore a third-party sale “as part of the terms of its $900 million of debtor-in-possession financing.”
According to Yahoo! News, the retailer filed for bankruptcy protection late last week, blaming for the most part store closures caused by the coronavirus pandemic. A source familiar with the situation shared with Yahoo! Finance there is no guarantee the retailer will be able to emerge from bankruptcy and may “opt to liquidate in a bid to satisfy creditors.”
J.C. Penney is just one of a few big-name retailers forced to file for bankruptcy protection during the COVID-19 pandemic. Other iconic retailers to file recently include J.Crew and Neiman Marcus.