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JCPenney Has Secured Some Extra Financial Cushioning

Kim Bhasin

JCPenney has expanded its borrowing capacity by $100 million, upping its total to $1.85 billion, Evan Clark at Women's Wear Daily reported.

It's a nice little extra financial cushion as the department store chain attempts its transformative turnaround attempt under CEO Ron Johnson.

JCPenney hasn't dipped into the facility yet.

“As we enter the second year of our transformation, today’s announcement reflects the confidence of our banking group in our long-term strategy and further strengthens our liquidity position as we continue to execute our plan,” CFO Ken Hannah told WWD.

Johnson addressed the issue in an interview on CNBC last week.

"We'll do it with the cash we have on hand," said Johnson. "We've yet to tap into the  revolver."

"D oesn't mean we wouldn't at some   point, but we haven't done it in   the first year," he continued.  "W e said we'd end the year with  about a billion dollars in cash.  I n a couple weeks we tell people  exactly where we ended up.  O ur teams did a great job   managing our cash during this   transformation."

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