In shaky financial shape after a tough year, J.C. Penney announced it was drawing $850 million out of its $1.85 billion committed revolving credit facility.
The money will be used to fund working capital requirements and capital expenditures, including inventory replenishment, the company said.
“The draw under our revolver today provides more than our current funding needs to ensure our continued liquidity,” said chief financial officer Ken Hannah in a statement. “Moreover, we will continue to explore additional capital raising alternatives with the assistance of our financial advisors.”
The move follows the departure of CEO Ron Johnson, who was replaced by Penney veteran Myron Ullman.
The company also officially announced it would be bringing back coupons and promotional strategies.