Free / Translations - Washington
May 15, 2020
GC Penny US stores
The company revealed on May 10 that Chief Executive Jill Solto received $ 4.5 million, while Chief Financial Officer Bill Waverford, Chief Commercial Officer Michael Laszlo and Chief Human Resources Officer Brian Evanson received $ 1 million.
These payments are aimed at ensuring that JC Penny motivates its executives and other employees to cope with the volatile environment caused by the emerging Corona epidemic, which has affected retail in the United States and elsewhere.
The 118-year-old company is one of many retailers that have been forced to close temporarily as the coronavirus spreads across the United States, "sending it more than a step into bankruptcy," according to CBC News.
The agency Reuters reported on its part that the company plans to submit an application to the authorities within the possible under Chapter 11 for bankruptcy, which could lead to the closure of about a quarter of US stores 850 travel stores permanently.
Chapter 11 of the United States bankruptcy law allows companies to reorganize under the law.
This procedure is available to all types of companies unable to afford debt or pay creditors, as companies or creditors can apply for bankruptcy protection under Federal Chapter 11.
Sources told Reuters that under one of the plans being discussed, JC Penny would go out of bankruptcy as two separate companies.
GC Penny's online sales were not enough to offset the huge losses it incurred while keeping stores closed throughout the United States in response to closures aimed at curbing the spread of the coronavirus.
While the company has enough cash to survive in the coming months, it faces debt payments of $ 105 million due in June and about $ 300 million in annual interest expenditures, along with more than $ 2 billion in debt owed in a year 2023.