J.C. Penney gets SEC inquiry regarding its financial position

Thu Dec 5, 2013 7:05pm EST

A woman checks her phone outside the entrance of a J.C. Penney store in New York August 14, 2013. REUTERS/Brendan McDermid

A woman checks her phone outside the entrance of a J.C. Penney store in New York August 14, 2013.

Credit: Reuters/Brendan McDermid

(Reuters) - Department store chain J.C. Penney Co Inc said it received a letter of inquiry from the U.S. Securities and Exchange Commission, seeking an explanation on the company's financial position.

Shares of the retailer fell more than 2 percent in extended trade after closing down at $8.85 on the New York Stock Exchange.

The company said the SEC requested information on October 7 regarding its liquidity, cash position, debt, and public offering of common stock announced on September 26.

A J.C. Penney shareholder had earlier sued the company when it announced its decision to issue more than $810 million in stock to boost liquidity.

The company said it is cooperating with the U.S. regulatory body on its request and providing the necessary material, in a regulatory filing with the SEC. (r.reuters.com/xyz25v)

The company has been desperately trying to turn its fortunes around since its failed attempt in 2012 to go upmarket.

(Reporting by Devika Krishna Kumar in Bangalore; Editing by Bernard Orr)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Greenspan2 wrote:
I wonder if hedge and private equity funds are trying to do to JCP what they are doing to Sears, make it irrelevant so that real estate holdings can be sold off.

Dec 05, 2013 7:22pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.