Sept 20 J.C. Penney Co Inc is in talks
to potentially raise more money while it tries to revive its
flagging business, Bloomberg News reported on Friday, citing
people with knowledge of the matter.
Penney is being advised by Goldman Sachs, according to one
person cited by Bloomberg. Goldman this spring arranged a $2.25
billion loan for the department store chain to shore its
finances after a precipitous drop in sales last year.
Penney has been struggling after a failed attempt in 2012 to
remake itself into a trendier store led to a 25 percent drop in
sales. Penney has brought back the heavy discounting that was
its hallmark to win back customers it lost, but sales again
declined in the quarter that ended in August.
A spokesman for Goldman Sachs declined to comment, while
representatives for Penney did not immediately return requests
Bloomberg said one option Penney is considering is to borrow
money against its real estate.
Penney said when it reported quarterly results last month
that it expected to end the fiscal year with $1.5 billion in
Separately, Vornado Realty Trust disclosed on Friday
it had sold off its entire stake in Penney, a move it had said
last week it would make.
Penney shares fell 1 percent to $12.80 in after hours