Deferring payments to suppliers only works until suppliers decide to defer shipments. It usually doesn’t take them long.
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.
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!
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.
For years I have asked myself “Who still goes to JCP” I now have an answer...Almost no one!!!!!
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.
And what are the directors all doing as the CEO drives this company over the cliff?
If I were a supplier, I would drop them first!
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?
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!
me oh my....
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.