JC Penney Talking With Creditors: Can It Ease Its $4 Billion Debt Burden?

JC Penney (JCP) may be getting a little assistance from its creditors to ease its $4 billion debt burden. The news comes just ahead of the holiday shopping season as CEO Jill Soltau looks to turn the struggling retailer around.

JC Penney reportedly is working with its creditors, who are close to signing nondisclosure agreements by month-end, to allow them access to confidential company information, sources close to the matter told Bloomberg. The retailer is not expected to be discussing a bankruptcy filing with the creditors, the news outlet reported.

As of recently, the company has been taking action to rise above its falling sales. In July, JC Penney hired restructuring advisors, and more recently, it has partnered up with thredUP for discounted resale clothing. The company has also launched the St. John’s Bay Outdoor line, an outdoor collection based off the popular brand, and announced it was exiting the appliance business earlier this year.

JC Penney reported dismal earnings for fiscal Q2 2019, reporting a net loss of $48 million. The company also announced store closures in March, shutting the doors to 27 locations by year-end. JC Penney has also received a warning that it is in danger of being delisted from the New York Stock Exchange with its stock trading below $1.

Shares of JC Penney stock were up 14.52 percent as of 12:55 p.m. ET on Friday.