J.C. Penney Co. Inc. is prepped to raise more money as chief executive officer Myron “Mike” Ullman 3rd seeks to stabilize the business.
This story first appeared in the April 25, 2013 issue of WWD. Subscribe Today.
The retailer filed a shelf registration statement with the Securities and Exchange Commission late Wednesday that lays the groundwork for it to potentially sell “common stock, preferred stock, depository shares, debt securities, guarantees of JCP debt securities, warrants, stock purchase contracts and stock purchase units.”
The company, which this month drew down $850 million of its credit facility, is working with a host of financial advisers and exploring numerous ways to raise money.
Penney’s could tap into the value tied to its real estate as it seeks to acquire funds. The company owns about 430 of its 1,100 doors as well as its massive headquarters in Plano, Tex.
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Money raised from the sale of any securities will go toward general corporate purposes. Penney’s lost nearly $1 billion last year and sales fell 25 percent as former ceo Ron Johnson sought to remake the firm.
The company is said to have burned through more than $1 billion in cash in the first quarter as it caught up on vendor payments and rolled out new Joe Fresh and home goods shops.
Shares of Penney’s slipped 1.7 percent to $15.19 Wednesday.