J.C. Penney says it has amended its bank credit facility to increase its borrowing capacity to $1.85 billion and to expand the accordion feature to $400 million.
The Plano, Texas, retailer says late Tuesday that the amendment enhances the company's liquidity and provides additional financial flexibility to support its transformation initiatives.
The move comes as the struggling department store chain marks the one-year anniversary of a major overhaul of every aspect of its business from pricing to merchandise. The plan is being spearheaded by CEO Ron Johnson.
But the transformation has been more challenging than expected. Penney is expected to report its fourth consecutive quarter of big sales drops and net losses since it implemented a radical pricing plan that eliminates most sales.