Bedeviled by underperformance, JC Penney (JCP) can’t seem to catch a break. Only days after industry rumors surfaced that it might seek an additional $1 billion in financing to power its laggard turnaround strategy, its stock just plummeted 16.6% to $9.93, the lowest it has been since October 2000.
JCP announced a staggering $586 million loss for the second quarter ending August 3rd, widespread attention has turned to the company’s overall financial profile. Fears about the company’s creditworthiness already swirled about the industry last July when factoring firm CIT placed a considerable basket of orders on hold, ostensibly worried about its cash flow.
JCP’s second quarter losses brings its total reported losses to $934 million, a considerable leap from the tally at this point last year of $310 million. Sales have plunged in the second quarter 11.9% and 14.2% for the year in total so far.
Some industry experts are speculating that the retail giant might start to sell off assets to raise capital. The totality of its assets are estimated to be worth more than $4 billion.