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J. C. Penney: Shareholder Wipe-Out (People who own the Stock)



This is Why you don't want to OWN COMPANIES that are not EARNING MONEY and have WEAK BALANCE SHEET


- J. C. Penney recently declared bankruptcy, a move that has created a lot of uncertainty for a lot of stakeholders.


- One thing is clear, and that's that shareholders are being wiped out by the development.

There appears to be interest from Amazon, but this is unlikely to benefit shareholders as a purchase through bankruptcy is more logical.


After years of pain, the end has finally come at last for retail giant J. C. Penney(JCP).


With bankruptcy proceedings underway, there’s a lot of uncertainty over what the future will look like for the business, but one thing has been made abundantly clear: there will be nothing left over for current shareholders. Given this harsh realization, investors who do still own stock in the enterprise should consider getting what value they still can from selling the stock.


THEY WAS LOSING MONEY BEFORE COVID 19


This isn’t to say that death wouldn’t have occurred without COVID-19. In fact, it has been an almost certain expectation for years. Every year for at least the past five years, revenue at the company has declined, dropping from $12.63 billion in 2015 to $10.72 billion last year. Net losses over this time frame have been persistent


One thing is for sure: absent a miracle deal from Amazon, common shareholders will be wiped out in their entirety. Even many debtholders will probably have a haircut. The company will likely either be restructured or it may be acquired by Amazon

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