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Bloomberg: J.C. Penney Says CIT Is Still Funding, Has Ample Liquidity

August 01, 2013, 07:53 AM
Filed Under: Industry News

Bloomberg reports J.C. Penney denied a report that CIT Group has stopped funding some of its suppliers.

Shares tumbled when The New York Post reported that CIT ceased supporting deliveries from small manufacturers to its stores. The newspaper didn’t name its source.

“Contrary to the news report, CIT continues to factor and support deliveries from J.C. Penney suppliers,” the Plano, Texas-based store operator said in a statement. J.C. Penney “continues to have ample liquidity to manage its business with expectations to close the quarter with approximately $1.5 billion in cash on its balance sheet,” it said.

J.C. Penney also said CIT factored merchandise currently represents less than 4 percent of its overall inventory for the year.

J.C. Penney is working to improve sales after revenue last year tumbled 25 percent to $13 billion, leading to a net loss of $985 million after Ron Johnson’s failed attempt to remake the retailer. The chain ousted Johnson, a former Apple Inc. executive, in April just 17 months after he took the job.

Mike Ullman, who retook the CEO spot, is working to shore up the company’s finances and increase promotions to lure back shoppers.

View the entire Bloomberg story.

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