JCPenney sets the record straight on national report

FOX 43 News
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JCPenney’s Senior Manager of Corporate Communications and Public Relations Sarah Holland is taking issue with a national story that aired on Fox 43 News Tuesday which compared the financial struggles of Sears with that of JCPenney. 

Here is Holland’s complete statement regarding the story:

It is misleading to say that JCPenney is struggling to survive.  It’s also an irresponsible assumption that executive vacancies somehow translates to our inability to operate our business. The following stats below demonstrate we are in a much different financial position than Sears. 
 
•         JCPenney expects to end the year with well over $2B in liquidity (fiscal year ends Jan. 31)
•         JCPenney ended the 3rd quarter with ~$1.95B in total liquidity
•         JCPenney expects positive free cash flow for Fiscal 2018
•         JCPenney exceeded market expectations on earnings per share in the 3rd quarter.
•         Despite previous downgrades, the credit rating agencies have maintained their highest liquidity rating for JCPenney
•         JCPenney paid off $190M debt maturity in February of 2018
•         JCPenney issued a $400 million senior secured second priority note, maturing in 2025
•         Proceeds used to tender for $125 million of our 2019 bonds and $250 million of our 2020 bonds
•         This leaves a very manageable maturity schedule of $50 million in 2019 and $110 million in 2020
•         This clears runway for next several years; our next meaningful unsecured debt maturity is 2036
 
Given that JCPenney employs approximately 100,000 associates, I’d greatly appreciate that your station provide a redaction and clarify the comments made during your earlier newscast.
 
If it’s helpful, this story does a fair job of explaining how our position and circumstance largely differs from Sears.
https://finance.yahoo.com/news/apos-too-early-call-j-122300918.html
 
 

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