"Cash-strapped J.C. Penney Co. JCP +1.38% drew $850 million from a credit line to help fund its day-to-day operations, buying time for new chief executive Myron "Mike" Ullman to reverse sagging sales at the department store operator while it looks for ways to raise additional capital."
J.C.Penney's new CEO has a hard work ahead to gain back J.C.Penney's customers loyalty and brand equity. This article says that before borrowing $1.85 billion from its banks, Penney wouldn't have enough cash to support its operation for more than one year. In addition, the company currently has CCC+ credit rating based on S&P rating system. The changes made during Ron Johnson's leadership hurt the company's sales as well as its brand equity. Mr. Ullman is likely to continue with some aspects of Mr. Johnson's vision on creating a myriad boutique-like shops within J.C. Penney stores while going back to the old J.C.Penney's coupons and odd prices (9.99). We are all watching Mr. Ullman's next move.
Source: http://online.wsj.com/article/SB10001424127887324485004578424423870595916.html?mod=business_newsreel
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