J.C. Penney Company Inc. (NYSE:JCP) said Monday that it has secured a five-year $1.75 billion credit line from Goldman Sachs Group Inc. (NYSE:GS). The loan is backed largely by the Plano, Texas-based department store’s real estate assets.
“Together with our revolving credit facility, this will give us the financial strength we need to meet our current funding requirements and build toward a successful future,” said Chief Financial Officer Ken Hannah.
Earlier this month the company was reportedly in talks with Wells Fargo & Co. (NYSE:WFC) to get a $500 million, five-year loan to shore up its liquidity.
On April 15 J.C. Penney said it took $850 million out of a separate revolving credit facility to finance day-to-day operations and to complete renovations at its outlets. The company is working to recover from last year’s dismal attempt to reinvent itself as a hipper brand under the direction of former Apple retail whiz Ron Johnson, who was let go on April 8.
(Read the full statement about the company’s loan from Goldman Sachs here.)
Angelo Young is a general assignment business reporter who joined IBTimes in April 2012. Much of his career has been behind the scenes as a copy editor, assignment editor and...