Sunday, March 9, 2014
The Associated Press
PLANO, Texas - J.C. Penney on Monday confirmed that Goldman Sachs will provide it with $1.75 billion in financing.
Rumors about the financing had begun to circulate Friday.
The five-year secured term loan can be used to fund the company's operations as well as pay off debt.
J.C. Penney has been burning through cash. Earlier this month, it said it would draw $850 million from its $1.85 billion revolving credit line to pay for replenishing inventory.
The Plano, Texas-based company earlier this month fired its CEO, Ron Johnson and rehired his predecessor Mike Ullman. An ambitious turnaround plan by Johnson had backfired and caused sales to plummet.