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ANALYST: It Looks Like JC Penney Is Deferring Payments To Suppliers To Shore Up Cash
Business Insider ^ | 2/28/13 | Joe Weisenthal

Posted on 02/28/2013 7:07:50 AM PST by jimbo123

JC Penney shares are plummeting today after a big earnings whiff yesterday.

One bright spot was how much cash the company accumulated.

But even that is dubious.

Morgan Stanley's Kimberly Greenberger notes that it looks like JC Penney is defering payments to vendors.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: homosexualagenda; jcpenney
Highly likely that JCP will soon start telling their other vendors that they must accept 180 day payment terms or get dropped from their stores. Looks like JCP is trying to avoid filing for bankruptcy until after Christmas.
1 posted on 02/28/2013 7:07:55 AM PST by jimbo123
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To: jimbo123

Deferring payments to suppliers only works until suppliers decide to defer shipments. It usually doesn’t take them long.


2 posted on 02/28/2013 7:10:39 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: jimbo123

Worked for a retail chain many years ago in my youth.
First whiff we had that the company was in trouble was when the Pepsi driver pulled up and would not unload until we had paid him in cash.


3 posted on 02/28/2013 7:13:27 AM PST by Buckeye McFrog
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To: jimbo123
My wife worked at Penney's for 25 years. Retired with a small pension and a lifetime employee discount. Hope this doesn't affect her pension...have to look into that. The 25% employee discount is near worthless to us because they no longer carry much that we want to buy.

Penney's used to be a great company. James Cash Penney's motto was the Golden Rule and he had it displayed in all his stores. We shopped there for school clothes because they carried our Catholic School uniforms, we bought ALL of our BSA uniforms and paraphenalia at Penney's, and we were always treated with respect. Contrast that with their current CEO who said on squackbox a few months ago that he didn't care if Penney's traditional customers didn't like the direction he was taking the company because they were no longer his target demographic! James Cash Penney must be spinning in his grave!

4 posted on 02/28/2013 7:19:06 AM PST by pgkdan ( "Those who hammer their guns into plows will plow for those who do not." ~Thomas Jefferson)
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To: jimbo123

The business networks are not mentioning one explanation for the precipitous collapse of this once-great company. No one took it seriously when Christians with biblical values, who were offended by jcp’s overtly-homosexual advertising, vowed not to shop there.

Ron Johnson, CEO of the almost bankrupt company, is not laughing now.


5 posted on 02/28/2013 7:30:17 AM PST by txrefugee
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To: txrefugee

Christmas sales for JCP were down by almost 40%. And that’s the most important time of year for them in terms of sales volume. And now they’re expecting their vendors to ship them projects and let them have 6 months to pay? Any vendor that agrees to those terms deserve to get screwed when JCP files for bankruptcy.


6 posted on 02/28/2013 7:35:58 AM PST by jimbo123
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To: pgkdan

I too remember jcp as the go to place for back to school shopping, I followed my Mom’s example with my own kids. And don’t forget the catalogs that would arrive in the fall and spring along with the special Christmas issue. I miss the America of my youth.


7 posted on 02/28/2013 7:52:54 AM PST by Conservative4Ever (I'm going Galt)
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To: jimbo123

For years I have asked myself “Who still goes to JCP” I now have an answer...Almost no one!!!!!


8 posted on 02/28/2013 7:54:45 AM PST by ontap
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To: jimbo123

The two JCP stores in our area have drastically reduced the amount of merchandise on their floors. It looks like a ghost town in both stores. Racks spaced far apart and lots of room between them. Their men’s suits and sports coat area went from a large area to almost nothing over night. I told my wife it did not look good that they had so much empty store space, that something was up.


9 posted on 02/28/2013 7:59:53 AM PST by RetiredArmy (1 Cor 15: 50-54 & 1 Thess 4: 13-17. That about covers it.)
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To: jimbo123

And what are the directors all doing as the CEO drives this company over the cliff?


10 posted on 02/28/2013 8:14:58 AM PST by reefdiver (Be the Best you can be Whatever you Dream to be)
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To: jimbo123
Highly likely that JCP will soon start telling their other vendors that they must accept 180 day payment terms or get dropped from their stores. Looks like JCP is trying to avoid filing for bankruptcy until after Christmas.

If I were a supplier, I would drop them first!

11 posted on 02/28/2013 8:14:58 AM PST by PGR88
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To: jimbo123

Hmmmm. Guess the two-daddy/two-mommy “families” turned out to be not so lucrative after-all. Seems like a very limited market to me anyway. Are they still paying Ellen DeGenerates big bucks?


12 posted on 02/28/2013 8:20:35 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: jimbo123
I took a short position in JCP just after the info on earnings and SSS were reported. This dog with fleas is going to go the way of Montgomery Ward, and I hope Ackman gets throttled in the process.

The problems with JCP is huge, and glaringly evident. The SSS indicates that their recent marketing changes have driven off the core base of consumers. The inventory sell-down is troubling (I'm sure the holders of their credit facilities have taken note). And the cash burn is astronomical, all the while not buying inventory. Another huge issue is that they don't own their stores (for the most part). At least SHLD is a giant real estate holding company and there is some underlying value in the dirt, but JCP is an empty bag. Flush this puppy, it's toast!

13 posted on 02/28/2013 8:27:54 AM PST by RobertClark ("May God have mercy upon my enemies, because I won't" - George S. Patton)
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To: Conservative4Ever

I especially miss the Sears catalog.

I tried to shop for our kids’ school clothes at JCP but the only year we ever found anything was when the store had everything on sale during a major remodel. I finally gave up on them when we found Kohl’s which beats any store on dirt cheap prices and their large selection makes it a one stop shopping day and you’re done.


14 posted on 02/28/2013 8:28:18 AM PST by bgill
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To: jimbo123

me oh my....


15 posted on 02/28/2013 8:49:54 AM PST by Deathtomarxists (Pantyhose are groovy baby, try some on today!)
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To: bgill

My only problem with Kohls is that they are one of the employers who just cut all of their part-timers to 29 hours or less.

And Herb Kohl voted FOR Obamacare in the Senate.


16 posted on 02/28/2013 8:57:05 AM PST by Buckeye McFrog
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To: reefdiver

The directors are preparing to boot Johnson, but they started paying attention too late.


17 posted on 02/28/2013 9:06:35 AM PST by jimbo123
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To: pgkdan

” The 25% employee discount is near worthless to us because they no longer carry much that we want to buy.”

This is THE real reason JCP is going under!


18 posted on 02/28/2013 9:37:40 AM PST by vette6387
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To: jimbo123

It wasn’t like we didn’t try to tell them they would be flushed for appealing(bending over) to the 4% of gays that make up the population.


19 posted on 02/28/2013 10:09:17 AM PST by freeangel ( (free speech is only good until someone else doesn't like it)
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To: pgkdan

I worked at Penney’s part-time right out of college, and the store was THE place for families to shop. The store was tastefully decorated, and employees were knowledgeable about their specific product area. We ALL wore suits or coat & tie for men, dresses or pantsuits and jackets for women. It was a place customers knew to trust.

I went about a year ago, and the store was full of slouching teenagers wearing polo shirts and baggy pants, piercings and tats, spiked colored hair and general slovenliness. Everything is “cash wrap” centered now, with no employees on the sales floor to offer advice or help with selection - they are all just cashiers now. Even the suit section is devoid of salesmen.

It’s no wonder that the sodomites overran these stores. They were on the downhill slide to begin with.


20 posted on 02/28/2013 2:59:11 PM PST by fwdude ( You cannot compromise with that which you must defeat.)
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To: catnipman
Are they still paying Ellen DeGenerates big bucks?

Maybe they pay her in carpet.

21 posted on 02/28/2013 3:01:21 PM PST by fwdude ( You cannot compromise with that which you must defeat.)
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