Zombie J.C. Penney Finally Files for Bankruptcy, in Deal with Distressed Debt Funds. Stock and Some Bonds Wiped Out

by Wolf Richter
Wolf Street

Investors bet on this outcome for years. Covid-19 just sped it up by a few months. Department Stores Are Toast.

I’m in awe of how long these publicly traded companies with access to hyperventilating capital markets can hang in there and burn cash and ruin their brand and drive away their customers, and make expense-cutting their business model, and present this expense-cutting to investors to get more cash to keep the charade going, over and over again, before finally investors refuse to throw good money after bad. And then it still takes nearly forever before these companies can’t breathe any longer, by which time their brand has been turned into a liability suitable only for hanging on a scarecrow.

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