JCPenney (Plano, TX) looks to be restructuring its debt with the recent hire of financial advisers, Reuters reported on Thursday.
These financial moves are intended to keep JCPenney on course in its long-term strategy to circumvent bankruptcy. The department store has accumulated a long-term debt of $3.8 billion with a quarterly interest expense of $73 million.
Any restructuring effort is "one of the last rolls of the dice" for JCPenney, GlobalData Retail Managing Director Neil Saunders told Retail Dive.
“Restructuring won't necessarily save JCP,” Saunders said. “But it will buy them time and allow management to develop plans to improve trading."