J.C. Penney Co. Inc. has expanded its credit facility, securing some extra financial cushioning as it works to turn around operations.
The move increased the company’s borrowing capacity under the agreement by $100 million to $1.85 billion.
Penney’s said the amendment “enhances” its liquidity and “provides additional financial flexibility to support its transformation initiatives.”
The company has yet to turn to the facility, funds from which can be used for general corporate purchases.
Ken Hannah, chief financial officer of Penney’s said Tuesday afternoon: “As we enter the second year of our transformation, today’s announcement reflects the confidence of our banking group in our long-term strategy and further strengthens our liquidity position as we continue to execute our plan.”
The company has been changing from a traditional department store set up to a group of shops-in-shop.
Last week, Ron Johnson, chairman and chief executive officer, told CNBC that his reimagining of the chain was on track to be finished by 2015.
“This year, we’ll complete the transformation of 40 percent of nearly 700 of our stores,” he said. “That’s significant. We’ll do it with the cash on hand. We have yet to tap into the revolver. It doesn’t mean we wouldn’t at some point, but we haven’t done that during the first year. We said we’d end the year with about $1 billion in cash, in a couple weeks we’ll tell people exactly where we ended up.”
The company will report its fourth-quarter results on Feb. 27. Analysts expect the company will post losses of $1.27 a share, down from earnings of $1.28 the prior year. Sales are projected to have fallen 23.2 percent.
Shares of Penney’s gained 0.7 percent to $19.41 in after-hours trading Tuesday.
The credit facility was co-led by J.P. Morgan Securities, Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Capital Finance.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)