Pandemic Spells Likely Bankruptcy for JC Penney, Other Mall Retailers
In an effort to slow the spread of coronavirus, retail stores and malls are shutdown across the United States. It could signal the end for several retailers.
Department stores have been in financial trouble for a while, unable to keep pace with online shopping from places like Amazon, and discount retailers like TJ Maxx. Experts say the coronavirus could be the end, with "very few likely to survive".
Two retailers with a presence in Central New York's Destiny USA and Sangertown Square Mall could be doomed.
JC Penney is preparing to file bankruptcy, with the official filing to come within the next few weeks. The troubled retailer has big debt payments due that it is unlikely to be able to pay.
Macy's, another anchor store for both malls, is also in deep trouble. Earlier this year, the department store announced plans to close roughly 1/3 of its stores. Now, the company is looking to raise about $5 billion in debt to avoid bankruptcy.
When malls are allowed to re-open, experts predict the landscape could look very different - the same might be said about Central New York malls.