These are testing times for J.C. Penney. The company has just recovered from bankruptcy and there are fears that the projections for the year 2021 don’t look good either.
There is a new team at the helm at J.C. Penney, but this is not going to help them curb the financial crisis ahead. There are multiple reasons why businesses of such magnitude fail miserably. The major blame befalls on the top management.
A wrong decision at an instant can have an adverse impact on the organization’s financial health. J.C Penny faced the same fate. The management did not seem to be serious about making the right financial decisions, leaving J.C. Penney in trouble.
Amidst the COVID-19 crisis, the companies have successfully leveraged the online marketing sphere to their advantage, thus managing to reap the benefits in this crunch financial time.
It is to the surprise of the experts that J.C. Penney is still surviving in the market. They are eventually going to be shut down once and for all.
One of the most important reasons for J.C. Penny’s failure even after the new owners acquired the firm is that they did not manage the resources properly. The new owners appointed Soltau to make the changes required to get the company up and running.
J.C. Penney had already exhausted all the financial assets and they might not be eligible for any other investment. This means that it is currently reliant on the funds from the government under the new stimuli, which it may not qualify for as well.
Amazon, Walmart, and Target are keen to cash in on the opportunity to grab the attention of the consumers in this pandemic, at the expense of J.C. Penny.