JC Penney Needs A Deep-Pocketed Investor to Avoid Chapter 11

Imperial Capital analyst Mary Ross Gilbert issued new ratings for retailer J.C. Penney Company, Inc. (NYSE:JCP) in her Capital Structure Focus of October 21, 2013. Much of her analysis takes into account a likely bankruptcy restructuring by J.C. Penney Company, Inc. (NYSE:JCP) in 2014 and its effect on the beleaguered retailer’s outstanding debt and listed shares. Why is JCP’s bankruptcy likely? Ross Gilbert says recurrent negative publicity speculating on JCP’s bankruptcy “appears to be wearing down vendors and management…and as a result, the Board may find that it ultimately has no choice but to seek bankruptcy court protection via a voluntary…