UPDATE 4:15 p.m.: The Wall Street Journal reports J.C. Penney Co. lenders reached a deal Thursday, averting potential litigation between them.
According to the news article, Kris Hansen, a lawyer for creditors said at a court hearing his group had come to terms with rival lenders that and offered the once major retailer a $900 million financing package.
Details weren’t given on the compromise, which requires approval from the U.S. Bankruptcy Court in Houston.
COVID-19 has hit retailers already struggling, such as JCPenney and Tuesday Morning, who both recently filed for bankruptcy.
JCPenney reps announced last month to close 242 stores permanently through its Chapter 11 bankruptcy restructuring plan, leaving it with about 600 remaining locations.
It is still unclear if the Killeen JCPenney, which was temporarily closed due to the coronavirus pandemic and reopened two weeks ago, will be among the list of permanent closures.
According to a May 29 U.S.A. Today’s article, the company’s lawyers expect to identify the locations to close permanently in a court filing this Thursday.
Tuesday Morning, which has a location in Temple, sells home decor, bath and body goods, crafts, food and toys.
After filing May 27, Tuesday Morning reps released the list of the first 132 stores of the approximately 230 locations it plans to close this summer. For Texas, 12 locations are expected to close; the Temple store was not among them.
About 100 additional stores will shut down in a second round of closings after the company tries to renegotiate leases. That list hasn’t been released yet.