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J. C. Penney Company, Inc. Message Board

  • bamm160 bamm160 Aug 3, 2013 10:28 PM Flag

    BANKRUPCY rushing faster than you could ever imagine

    I had an 8 month time frame but I'm moving it up. I give JCP till 4th Q and BK will be filed. Ullman gave it away when he slipped and said that JCP has 1.5b in cash on their sheets. That means they burned through a minimum of 800m to 1b this last Q. This is very alarming. I feel sorry for the employees but maybe (hopefully!) they are cashing in now. It would be a shame to have this end up like Worldcom where the lower level employees were told to hang on and lost everything- receiving pennies on a dollar.

    Sentiment: Strong Sell

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    • This was how I broke down the cash burn when he first said it - - depending on merchandise invoice dating and inventory figures(my guess is that invoice dating probably prompted the CIT factoring shutdown for the 2 days)

      retayl101 • Aug 1, 2013 8:40 AM

      They ended last quarter with 821 million - they spent appx 254 million to retire 2023 bonds to maintain covenant compliance - they borrowed 2.25 billion from GS - that would leave a cash burn of 1.3 billion last quarter(reduced by any increase in inventory which I do not have the figures for)

    • If my projected scenario plays out(BK after Xmas) - the employees at the top 4-500 stores will still have jobs during and after the reorganization - the other 600 stores will be liquidated - - - - - I don't for a minute believe this buttttttttt - - - - if the company used part of their cash burn to retire the 850 draw against the Credit line and reduce their interest payments the company probably would survive - - - - - otherwise we're in perfect agreement on the time table.

      There is absolutely NO reason for anyone to hope for a buyout - no one is going to assume that amount of debt for NO return - - - GS has everything tied up in one neat package - - - they control everything - - - bond holders will regret not continuing with their suit, because they would have received more than the pennies on the dollar they are going to get now.

    • beetleruss Aug 4, 2013 7:24 AM Flag

      Don't feel bad for the employees - they're all low-wage flunkies. All the seasoned workers were let go under Ron Johnson. Current JCP workers will find new jobs at the Burger Shack or Puppies R Us.

      • 1 Reply to beetleruss
      • Your a complete #$%$ You know, karma will bite you for that comment. How dare you speak ill of workers who made JCP successful and spent years and dedication to this company that paid a greedy and incompetent CEO to go away because her just single handily destroyed a GIANT retailer for over a hundred years in the making. JCP had it's golden years and because they made a colossal mistake and threw millions down the toilet to be led in the pit of hell thanks to Satan's lot, RON JOHNSON. I feel extra bad for all the employees and karma is not done with the greed in this country by CEOs that have been handed all that power to destroy once successful and family business that had the concepts right and treated their workers with respect and a chance to succeed. You think your something better than these workers?...I doubt that, just a little man with no soul.

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