Restructuring Information
Vendor Partners FAQ
- JCPenney has sufficient liquidity to meet our ongoing obligations, including paying our vendor partners for all goods and services received on or after the filing date.
- JCPenney has approximately $500 million of cash on hand that we were already authorized to use and we have received authorization from the Court to access $450 million of new money.
- We are continuing to serve our customers as we move through this process with a commitment to working seamlessly with you, our valued vendor partners.
- Yes. Vendor partners will be paid in full for all goods and services received on or after the filing date.
- Invoices for goods and services provided on or after May 15, 2020, should be submitted through the typical accounts payable channels, and payments will be processed in accordance with contract terms, if applicable.
- JCPenney will no longer be delaying payments by an additional 60 days.
- U.S. bankruptcy law mandates that unpaid debts for goods received and services rendered prior to the filing date cannot be paid without specific Court approval.
- If you provided goods or services before the filing date and have not been paid, you can file a proof of claim with the Bankruptcy Court.
- Our partnership is critical to our business and I am serving as your advocate. I want you to be taken care of, but at the end of the day this process is being handled in court.
- Yes. Vendor partners will be paid in full for all goods and services received on or after the filing date, regardless of location.
- Invoices for goods and services provided on or after May 15, 2020, should be submitted through the typical accounts payable channels, and payments will be processed in accordance with contract terms, if applicable.
What happens if my work started pre-petition and carried over into post-petition, do I need to send two bills?
Expand
- Yes, you can send two separate invoices – one for the pre-petition period and the second for the post-petition period. Submitting separate invoices for pre- and post-petition claims will assist in expediting the review process.
- Alternatively, if only one invoice is submitted, please clearly identify the date of goods or services received.
- Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.
Will JCPenney pay invoices according to the same schedule that was used before the Chapter 11 filing?
Expand
- Yes. JCPenney expects to continue to place orders and receive goods and services, and to pay all vendors in full for goods and services received on or after the filing date as usual.
- JCPenney will no longer be delaying payments by an additional 60 days.
- Yes. JCPenney expects to continue to place orders and receive goods and services.
- It is against the law to take back goods from a company that has filed for Chapter 11 without following the applicable procedures under the Bankruptcy Code.
- Moreover, certain secured parties may have a superior lien on the goods, and return may not be permitted.
- We are continuing to serve our customers as we move through this process with a commitment to working seamlessly with our vendor partners.
- If you have a contract with JCPenney, bankruptcy laws require that you continue to perform services or provide goods under that agreement unless otherwise ordered by the Court.
- We are committed to the partnership we have developed with your organization and will continue to work closely with you throughout this process.
- Importantly, we are continuing to pay our vendors. We have sufficient cash to run our business. We are making sales and meeting our business and operational commitments and are continuing to implement our Plan for Renewal transformation strategy. The basis of our Plan for Renewal is Offer Compelling Merchandise, Deliver an Engaging Experience, Drive Traffic, Fuel Growth, and Build a Results-Minded Culture.
- JCPenney has approximately $500 million of cash on hand that we were already authorized to use and we have received authorization to access $450 million of new money, including up to $225 million immediately.
- Proof of claim forms and other information about the claims process will be available at http://cases.primeclerk.com/JCPenney.
- If you have questions about filing a proof of claim, you can call JCPenney’s claims agent, Prime Clerk, at 877-720-6576 (or +1-646-979-4417 for international calls) or send an email to JCPenneyinfo@primeclerk.com.
- We will keep you updated on our progress as there is information to share.
- In the meantime, please reach out to your usual JCPenney contact with any questions.
- Additional information can also be found at www.jcprestructuring.com.