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JC Penney files for bankruptcy

J.C. Penney has filed for Chapter 11 bankruptcy protection, becoming latest retail casualty of pandemic.

The announcement follows Neiman Marcus and J.Crew who also filed for bankruptcy in May.

Despite its iconic 118-year legacy, Plano, Texas-based J.C. Penney was already struggling with a roughly $4 billion debt load and increased competition from online retailers before the virus forced widespread stay-at-home orders, crippling what remained of foot traffic.

By seeking reorganization protection, however, company officials are hopeful they can shutter roughly one-quarter of the department store chain’s 850 stores and move forward with a leaner model, Reuters reported.

It was not immediately clear how many of J.C. Penney’s estimated 85,000 employees will be affected

According to CNBC, J.C. Penney reported $10.7 billion in net sales in 2019, down 8.1% from the year prior.