J.C. Penney withdraws financial guidance and closes its nationwide stores amidst the Coronavirus emergency

The
sharply rising cases of Coronavirus in the United States are weighing heavily
on businesses with many of them resorting to temporary shut down or work from
home for its employees. In the latest news, J.C. Penney withdrew is previously
given financial guidance as the company saw it impossible to predict its
performance this year amidst the Coronavirus driven uncertainty.

In
its statement on Friday, the American department store chain said that it is
unable to give a meaningful financial outlook for 2020 at the moment.

J.C.
Penney To Close Its Nationwide Stores Until April 2

J.C.
Penney had also declared earlier on Wednesday that it plans to shut all of
its nationwide stores until April 2 to minimize the fast transmission of the
flu-like virus. Further decision regarding operations, as per Penney, will be
announced later on the basis of how the health emergency unravels in the next
two weeks.

Penney
didn’t divulge information regarding whether or not its employees will be
receiving pay during this time. A company’s spokesperson refused to comment any
further at this stage.

J.C
Penney had scheduled its analyst day for April 7^th. In light of the
ongoing situation, however, it has also been delayed until further notice.

In
its SEC filing, J.C. Penney said:

“It
is in the best interest of its customers, stockholders, partners and associates
to remain focused solely on the operations of the business.”

Kohl’s
Also Closed Stores And Withdrew Financial Guidance

Earlier
in the week on Thursday, Penney’s competitor, Kohl’s
had also revealed that it is withdrawing its financial outlook for the
ongoing quarter and the fiscal year as it struggles to recover the losses
endured during the Coronavirus pandemic.

Kohl’s
had also announced that it has completely drawn its unsecured credit facility
worth £860 million to improve its financial flexibility and cash position.

The
health emergency is pushing an increasing number of retailers and American
department store chains into temporarily halting operations at their nationwide
stores. A few of the other prominent names that have resorted to a similar
strategy include L Brands, Nordstrom, and Abercrombie & Fitch.

J.C.
Penney’s announcement on Friday saw a 2% decline in the stock market. At £0.38
per share, Penney is trading over 55% down in 2020 so far. Its performance in
2019, however, was reported moderately upbeat with an annual gain of just under
10%. J.C. Penney currently has a market cap of £123.55 million.