By Olivia Oran and Phil Wahba
Sept 20 J.C. Penney Co Inc is looking to
raise more money, possibly through a combination of debt and
equity, according to a source familiar with the matter.
Goldman Sachs is advising Penney, the source said,
adding that the U.S. retailer is in early talks with banks and
institutional investors. The company is evaluating all
alternatives with regard to raising capital, the source said.
A spokesman for Goldman Sachs declined to comment.
Representatives for Penney did not immediately return requests
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.
Penney said when it reported quarterly results last month
that it expected to end the fiscal year with $1.5 billion in
Bloomberg earlier reported news of Penney's potential
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