JC Penney, still deep in a company-wide “reinvention,” has expanded its borrowing capacity by $100 million to cushion proposed changes in the coming years. The company plans to complete its transformation from a traditional department store to a “town square” style chain of shops within shops.
CEO Ron Johnson, who spearheaded the chain’s new action plan, says that “40% of nearly 700 of our stores” (out of 1,100 stores) will be completely transformed by 2014, and will be completely finished by 2015. Johnson told CNBC that the $100 million facility, backed by J.P. Morgan Securities, Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Capital Finance, has yet to be tapped into.
JC Penney’s fourth-quarter earnings will be announced on Feb. 27th. Analysts predict a posted loss of $1.27 per share, and that sales will have fallen by just over 23%. After the announcement of the increased borrowing facilities, the company’s shares gained 0.7%, rising to $19.41 on Tuesday.