JCPenney Clears the (Credit) Air

Plano, Texas–based department store JCPenney released a statement clarifying its revolving credit facility “in order to mitigate unfounded concerns” about the store’s business. According to the statement, the retailer “expects to have more than $2 billion of cash on its balance sheet at the end of fiscal 2008,” which ends on Jan. 31. In addition, JCPenney paid a $200 million debt maturity from its cash balances in August and has no debt maturities during 2009. And lastly, the retailer said it will not be required to make a contribution to its pension plan this year and does not expect to make a contribution next year, as well. According to a company spokesperson, “JCPenney has one of the strongest balance sheets in the retail industry and a cash position that is more than sufficient for all of our needs. Given this, there is no basis for any concern about our credit facility.”