J.C. Penney is refuting a July 31 news report that said bank CIT won’t factor and support deliveries from the retailer’s suppliers.
A New York Post report said that that the commercial lender grew “skittish after getting a peek at Penney’s financials, which have been deteriorating as the department store scrambles to recover from a botched turnaround bid under former CEO Ron Johnson.”
After the report was published online late Wednesday afternoon, Penney’s stock fell during the final hour of trading.
A statement from the retailer said that CIT had “told it directly” that it “continue to factor and support deliveries from J.C. Penney suppliers.”
J.C. Penney said it “continues to have the support of all of its key vendors,” noting that CIT-factored merchandise currently represents less than 4 percent of its overall inventory.
The company added it “continues to have ample liquidity to manage its business” and expects to close the quarter with $1.5 billion cash on its balance sheet.