JC Penney sales plunged, losses soared ahead of bankruptcy filing

In this Wednesday, Aug. 14, 2019, photo the company logo on the building at the JCPenney store in Peabody, Mass. J.C. Penney Co. on Thursday, Aug. 15, reported a loss of $48 million in its fiscal second quarter. (AP Photo/Charles Krupa)

by: CNN Newsource

Posted: Jun 11, 2020 / 03:25 PM EDT

Updated: Jun 11, 2020 / 04:59 PM EDT

(CNN Newsource) — JC Penney’s sales plunged and losses soared ahead of its bankruptcy filing as stores remained closed during the COVID-19 pandemic.

The department store chain filed for bankruptcy on May 15. Preliminary financial results for its fiscal first quarter that ended May 2 showed sales fell by $1.4 billion, or 56%.

All of JC Penney’s stores closed on March 18 and didn’t start reopening until early May following the close of the quarter.

Operating losses more than tripled to $339 million from $93 million a year earlier. The retailer was regularly losing money before the COVID-19 pandemic.

Its most-recent profitable year was 2010 and the company’s net losses have totaled $4.5 billion since then.

JC Penney has reported plans to close 154 stores permanently this summer and another 100 stores by the end of next year.