J.C. Penney's original name for their very first store, created by James Cash Penney, was The Golden Rule. This was their motto, and what they believed in, the foundation for what became a 100 year plus tradition.
On May 15, 2020, J.C. Penney filed for Chapter 11 bankruptcy protection. This was a premature bankruptcy filing that should not have been filed.
This GoFundMe has one purpose, and that is to ensure J.C. Penney does not wipe out the financial compensation packages, pension plans, stock options and bonds that employees and retirees, both past and present, are entitled to. All contributions and donations go towards a legal defense fund that will also provide additional legal resources and legal power to ensure that that all workers, employees, past, present, and retirees, receive all the benefits that they were awarded and entitled to.
J.C. Penney’s own financial standings showed that they had and still have approximately 1.5B in Cash, 300M in credit card revenues sales, and 691 stores operating in the US, over 60,000 employees and growing, as the company has been on a hiring spree according to https://jobs.jcp.com. They are looking to fill over 3,200 jobs that could amount to $100M annually if all jobs are retained.
J.C. Penney also has access to loans that give the company an exceedingly large amount of capital funding that to date have not been needed nor have they been used. J.C. Penney should not be in bankruptcy and has not shown the typical fallouts of a company that is hopelessly insolvent, as they have claimed. They are hiring, replenishing merchandise, running marketing and sales campaigns, none of which are signs of a failing company that is destined to get out of business. In fact, the opposite seems to have happened. J.C. Penney has done exceptionally well while being in Chapter 11 Bankruptcy. They have exceeded and outperformed their bankruptcy expectations, especially during this holiday season where they will likely gain the most profit from their end of the year holiday sale season. My own personal email is still receiving J.C. Penney advertisements for sales, catalogs, and they have flyers for December Holiday sales as well.
This bankruptcy was a fraudulent maneuver that allowed the executives of J.C. Penney to literally take advantage of bankruptcy law along with the covid-19 pandemic.
The bankruptcy was executed in a way that allows J.C. Penney executives to maximize their financial portfolios while in return wiping out ALL RETIREE PENSIONS (3.6 BILLION !!!), investment bonds, shares, and other financial investments.
The J.C. Penney executives get to sell all their awarded J.C. Penney assets during this bankruptcy, and then after the company is sold, they get a 10% stake in the newly formed company. To me, that is Double Dipping! After filing bankruptcy, the J.C. Penny executives were able to sell all their stocks, options, bonds, and other investments and then get an additional 10% of the newly formed company that J.C. Penny will become.
When you put this all together, along with the timing, it spells out bankruptcy fraud. This is not the first time this has been mentioned. Equity holders and attorneys have been trying to prove this as a fraudulant bankruptcy filing in court but to date it has gone nowhere. The bankruptcy Judge granted $250,000 and then increased it to $1,000,000 for Equity Holders to expose this fraud, show the truth, and determine a realistic value for the company as whole so that J.C. Penney could be sold be what would be a reasonable price. Sadly, these numbers were never met and Simon & Brookfield are now days away from acquiring all of J.C. Penney for a couple billion dollars. The lawyers that were hired to prove this for the Equity Holders quickly burned through the cash that was awarded by the Bankruptcy Judge. The Equity Committee ended up collapsing because of funding, it didn't have the financial backing to expose the truth and get real facts of the fraudulent bankruptcy case exposed. This is in comparison to the tens of millions (tens of millions!) J.C. Penney spent to prove their bankruptcy case that covers up all the fraud when the company is sold. The Equity Committee did put together a value they thought was reasonable for the company, that was approximately somewhere between $6 billion and $11.5 Billion. The original amount for the sale of J.C. Penney, a 118-year-old company was 1.75B. That is quite a discrepancy in numbers, in my opinion.
J.C. Penney executives put together a bankruptcy re-organization to devalue the company, wipe out pension plans, bonds, stocks & shares, investments, reduce or eliminate debts & leases while allowing the J.C. Penney executives to take advantage of the Covid-19 pandemic for which there is now a vaccine, prematurely file for bankruptcy, sell all their executive stocks, shares, and investment portfolios in J.C. Penney, and double dip their profits into the new company that buys them out. In short, everyone loses in this bankruptcy if it is to proceed and be finalized except the company executives, who took large bonuses right before filing for Chapter 11 bankruptcy.
The news media headlines for December 2020 report J.C. Penney is exiting Chapter 11. While this sounds wonderful, and makes one think J.C. Penney has been saved, this is simply not true. It is a cover up story that makes it sound like everything is fine when it is not. While many jobs will be saved, here are the hard facts. The truth about what really went down.
This GoFundMe page is for all those who have worked and put their time in at JC Penney and for them to get everything they have worked so extremely hard for and earned. Many people will not realize until it is too late, and the company is sold, that their investments, stocks, portfolios, bonds, financials, and especially pensions, will be wiped out! JC Penney has absolutely no intention of keeping these! In their bankruptcy proposal, they have requested to cancel all of it completely, 100%. This may turn into a long, battle, with appeals, but if we do not fight, will lose, and get nothing. This GoFundMe is not only to raise awareness of what the J.C. Penney executives are doing to their employees, but to also raise funding for attorneys to continue to fight.
A Whitehouse Congressional Petition Has Been Established for JC Penney! Please visit the petition here:
Congress, The Whitehouse, State Attorney Generals, and others have the authority to look into this fraudulent J.C. Penney bankruptcy and overturn the proposed reorganizational plan that wipes out investments for everyone, including retirees and pension pans.
JC Penney, a 118-year-old company, Filed for Chapter 11 Bankruptcy Protection which allowed them to wipe out 3.6 BILLION DOLLARS in RETIREE PENSION money. This 3.6 Billion will be gone, wiped off the books, and the retirees will never see anything from their pension from J.C. Penney when the sale of the company is complete and signed off by the bankruptcy judge. When this happens, all of this will vanish and be wiped off as if it never existed. No pensions for retirees.
The J.C. Penney bankruptcy wipes out $400,000,000 in bonds that were also issued to retiree and employees. Each bond was worth $25, and the bond owner received about $1.9 per bond, per year. Some of these bonds literally paid this out for life for the owner, as the largest bond still has 77 years remaining. The bonds are owned and backed by a third party and were designed never to fail and to always pay out. This bankruptcy completely wipes this out and the annual payments have been suspended. The retirees, pension plan owners, bond holders, they will never see any of this if the sale is completed and all this is wiped out.
Many employees received investment shares, debentures, and other financials, that were worth billions. These are common shares of J.C. Penney stock, originally traded as JCP but now JCNPQ. Under the bankruptcy plan, all these shares will be cancelled and wiped out completely. A 100% loss for any employee who was issued stock option shares or anyone who owns J.C. Penney stock. The media reporting that the company emerging from bankruptcy does not save the company stock, bonds, or pension. The bankruptcy filing by the executives of J.C. Penney state they will be cancelled once the sale is approved. All bonds, pensions, shares, investments, they will be completely cancelled if this can happen.
All the employees, retirees, and everyone who were a part of J.C. Penney made this wonderful company will get nothing for what they have done. Only the executives will, who ruined J.C. Penney. They decided to call it quits when they filed for Chapter 11 bankruptcy during the covid-19 pandemic. After filing the J.C. Penney bankruptcy, all the J.C. Penney executives liquidated their financial holdings in the company and that is exactly what they did. They have sold all their stock options, bonds, and all financial compensation that they received after filing for bankruptcy. They did this knowing that when J.C. Penney is sold, the executives of J.C. Penney will receive a 10% ownership in the new company that is formed.
Simon & Brookfield are the intended buyers, and this is the company the executives will own 10% of. Simon & Brookfield together, are worth over 7 billion. Bankruptcy law allows this all to happen, sadly, and it is all legal. But wiping out pensions, shares, bonds, and other financial investments can be stopped because this is not just illegal and wrong, it is highly immoral. Simon & Brookfield are set to make billions, because as Mall Owners & Operators, they have assets that Amazon, who is hiring 1,400 employees a day, is looking for. Simon & Brookfield have a contract with Amazon. Once this deal with J.C. Penney is complete and becomes part of the Simon & Brookfield portfolio, their net-worth is going to rise substantially from the current 7 billion dollars. Amazon will be using J.C. Penney Real Estate for distribution centers and other Amazon related operations.
The only way to make this sale happen for Simon & Brookfield is to literally abolish retiree pensions, bonds, stocks, shares, and other financial investments that were payout for employees. This tactic devalues J.C. Penney enough so that these 7-billion-dollar mall operators Simon & Brookfield can afford to buy J.C. Penney for a couple billion dollars. This is unlawful, illegal, wrong, immoral, and everything else. It must be stopped. The sale must be stopped. Amazon should be cursed for allowing such a fraudulent transaction to occur (though they may not know the dirty details behind Simon & Brookfield). J.C. Penney hired high class attorneys and spent tens of millions of dollars on their lawyers to make this all happen, while initially giving the equity team that includes pensions, bonds, shares, $250,000 to argue their case. It was then upped to $1M, but they ran out of money and folded and have now given up the battle.
While things like this frequently happen in corporate bankruptcy, the employees and people of the company should not be the ones being left with nothing. The executives of J.C. Penney get to double dip by selling their assets and getting 10% of the newly formed company while everyone else gets nothing.
JC Penney is doing so well that on http://jobs.jcp.com, they have 3,200 plus job openings. The holiday seasons, Black Friday, Cyber Monday, Christmas, J.C. Penney has exceeded literally all aspects of a company in bankruptcy and should not even be in bankruptcy. Retaining these employees for a year would cost about $100M. J.C. Penney must not be doing that bad if they are in a hiring frenzy.
Simon & Brookfield have tarnished The Golden Rule, the first store named and operated by J.C. Penney 118 years ago by what they have done to devalue this company and to do so before the Holidays, knowing that this is when most make the most profit from sales. After January 1st, 2021, J.C. Penney, will be worth more than it was worth in 2020 because of the all the holiday sales. The equity lawyers have stated J.C. Penney, a company valued that was once valued at many tens of billions of dollars. Simon & Brookfield want the 2020 valuation because that is all they can afford. They are not the right fit for the purchase of J.C. Penney. Look at what they are doing do it, just to be able to afford it. They have worked especially hard with the executives of J.C. Penney, who want this company sold yesterday. The sooner the better because these executives have committed fraud. The best way to cover up all this fraud is to sell the company as quickly as possible!
The name of J.C. Penney, their assets, cash, properties, stores, they are all saved and will emerge from bankruptcy. What will not emerge from bankruptcy are the hard-working Americans worked for when they retire. Some worked their whole life, while others worked part time retired. JC Penney was one of the last few good companies who still had a pension, but this new reorganization eliminates it.
The original May 15, 2020 bankruptcy filing stated retirees, pension plan owners, shareholders, bond holders, investment companies, will get absolutely nothing under the restructuring plan. This is a fraudulent move, and many of these people have no idea they are about to lose everything.
We need to save our J.C. Penney Retirees, their pension plans & bonds. It is simply not right for a company being sold, who will be making billions upon billions of dollars with their new contracts with Amazon who in the last couple weeks put out a news release they are hiring 1,400 employees a day or 72,800 fresh new hires a day. These people need to go somewhere, and the plan is for the new owners of, JC Penney to use their’. For Amazon, that 72,800 annual hire amounts to $227,360,000 in annual salary. JC Penney is hiring 3200+, which amounts to $99,840,00. Cash is flowing, and JC Penney does not need to be worried about bankruptcy. This was a ridiculous filing and must be stopped and thrown out. It is fraud and JC Penney are taking advantage of the economy.
Before the May 15, 2020 J.C. Penney Bankruptcy filing, the company pretended like everything was fine and handed out millions to its executives while it was still legal to do so, including $4.5 million to their CEO, Jill, $1 million to Bill Wafford, the CFO, $1 million to Michelle Wlazlo, and 1 million to Brynn Evansonn, head of HR. Millions were paid out before their bankruptcy filing and while still legal to do so. After making the bonus payouts, they deliberate defaulted on debt payments of $12M to Bond Holders and $17M to their Credit Line, and nobody has seen a nickel since.
This 118-year-old company, calling themselves J.C. Penney after James Cash, founded themselves in 1902. They filed for Chapter 11 Bankruptcy Protection on May the 15th, 2020. In their filing and have stated having more than 1.5B in cash, over 60,000 employees, and in the last 3 months, have been able to turn a profit while exceeded expectations of a company that allegedly needed bankruptcy protection. While sales are down, and unemployment rates are the highest anyone has ever seen, we do have a vaccine on the horizon. It is probably not the best time to be a mall owner during a pandemic such as Covid-19 but things will recover. Before Covid-19, J.C Penney was doing better with 90,000 employees. Similar malls such a Nordstrom, claim to be doing well and are in a strong financial position, along with Macy & Neiman Marcus. It is a tough time, but this is a bump in a road that has taken us for a long ride we were not expecting. We have a vaccine being distributed, 85% malls have re-opened, and the industry is exploding with online sales. Even Amazon posted that they were hiring 1,400 people a day and they are turning to Mall Operators to fulfill their operations.
This was a premature filing that benefits the executives of the company. Jill Soltau (CEO), Bill Wafford (CFO), Brynn Evanson (Human Resource Officer), the chief took advantage of Covid-19, the chapter 11 bankruptcy filing, and did what would be considered a “legal double dip.” They sold their positions in JCP after their bankruptcy filing, which is legal for the to do, and in their reorganization plan that they offered to the new company (Simon & Brookfield) they will get everything bank by owning 10% of the newly named company after JC Penney is sold.
J.C. Penney is a true American Company, having operations in all 50 US States, including some US territories, and sticking to their roots, having not expanded outside the United States.
They have 691 stores in operation across 604 cities in America, and are currently in a hiring frenzy, looking to fill over 3,200 jobs according to https://jobs.jcp.com
This company has billions in cold hard cash, is generated revenues from credit card sales that exceed $300M and have made hundreds of millions of dollars over the holiday season, while keeping their brick-and-mortar stores stocked, e-commerce sites flowing inventory, and sales, email and marketing going out promoting the holiday season sales. This company is having one of the best Holiday Seasons one could have. Many folks are ordering for their home, and JC Penney has been taking advantage of this knowing that online sales are not just booming and exploding, and they know this, and this is an essential market right now, and so does Amazon, who needs JC Penney’s real estate that is causing Amazon to explode with 1,400 new hires a day.
The original Judge, in the J.C. Penney bankruptcy case, granted $250,000 to try and prove an equity case that J.C. Penney was worth more than the lawyers for J.C. Penney’s had stated. J.C. Penney itself, spent tens of millions on lawyers, and essentially got exactly what they asked for because the equity side that represents bond holders, pension & retiree holders, shareholders, investment holders,
Jill Soltau is responsible for J.C. Penney’s bankruptcy. She does not have the track record of a reputable CEO. A lot of jobs are short without much accomplishment. She came aboard in 2018 to save the company and she failed and bankrupted JC Penney. While the company itself prematurely bankrupted the company only to double dip her way out of it. While she may be quite educating, she has yet to establish and make a name of herself.