(Bloomberg) -- J.C. Penney Co. won't make an interest payment due Thursday, another sign the company could be headed for bankruptcy.
The retailer said in a filing it wouldn't make a $17 million payment due on a term loan, triggering a five-day grace period. The company said it is evaluating strategic alternatives.
It's the second debt payment J.C. Penney has skipped in the past month. The retailer has been searching for assets to back a loan that would finance a potential bankruptcy, Bloomberg previously reported. The grace period on the previous missed payment runs out on May 15.
Neiman Marcus Group Inc. filed for Chapter 11 restructuring Thursday, the latest casualty in what could become a wave of retail bankruptcies amid widespread economic disruption from the coronavirus pandemic and efforts to contain it. With operations restricted for nonessential retailers, heavily indebted department stores and apparel chains that were already struggling have seen their sales dwindle to a trickle in recent weeks.
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