It seems that J.C. Penney just can't catch a break.
First, former CEO Rob Johnson got the boot following dismal sales and a 69 percent drop in shares.
Then, once interim chief executive Mike Ullman took up the reins, the company was forced to deal with the dregs of a 2012 lawsuit with Macy's over the distribution of Martha Stewart goods in the department store.
Stewart's company lost out on a bid that dispelled Macy's assertion that Stewart violated their contract when it came up with certain Martha products for J.C. Penney to sell.
While Ullman was still in office, he attempted to make the company more hip, catering to forward-thinking customers who sought out new looks from department stores.
The plan failed miserably, culminating in an overall loss of $985 million.
The company that's been trying to claw its way out of a dark hole of antiquity and sinking numbers has borrowed $850 million from its $1.85 billion credit facility in efforts to revamp J.C. Penney, reports Reuters.
The company stated that it will use the funds to pay for working capital needs and expenditures, including buying inventory for their home goods section, where they plan to make some serious revisions.
Fitch Ratings contends that borrowing this much money occurred sooner than expected, and is just a "stop-gap measure."
"We expect J.C. Penney will need to tap into various sources of funding including equity infusion," said the agency on Monday.
In addition to borrowing money, managing director at Green Street Advisors Cedrik Lachance told Reuters he thinks Penney will sell stores to bulk up funds.
"As Penney looks at its cash position and sources of cash, the real estate is going to play an important role. That's highly likely. I would not be surprised...if we see some stores being sold."
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