JCPenney is facing financial troubles amid the outbreak and the shutting down of their department stores. Sephora stated recently that they would not reopen their doors after the pandemic and that they would stop restocking in store products. Sephora’s products have been the major source of income for the department store. With this threat in place, JCPenney had to pursue a restraining order on April 27th to prevent Sephora from closing its inside store locations.
JCPenney did win this order and forced Sephora to reopen its doors with the department store. Sephora is countersuing the company in order to end their in-store contract in April of 2021. However, JCPenney may still be forced into bankruptcy. The company currently owes roughly $4 billion and were expected to make a payment of $12 million that was deferred for 30 days April 15th.
Foreseeing bankruptcy past the pandemic? We are here for you. Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an consultation.