JCP Draws $850 Million from Credit Facility

PLANO, Texas-J.C. Penney has drawn $850 million from its credit facility to help fund merchandise for its newly remodeled home department.

According to a company statement, the retailer has withdrawn the money to fund working capital requirements and capital expenditures, including the purchase of the merchandise for the home department. Ken Hannah, J.C. Penney's chief financial officer, said, "As we near completion of the home-department transformation in over 500 stores, we have been undertaking and will continue to experience a significant inventory build and increase in capital expenditures."

Earlier this year, Hannah said, J.C. Penney increased its revolving credit facility to a total $1.85 billion in anticipation of its operating and capital needs, especially for the first half of this year.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

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