HOUSTON: US retail giant JC Penney filed for bankruptcy on Friday due to the impact of Covid-19, China’s Xinhua news agency reported.

The company said in a statement that it had entered into a restructuring support agreement with lenders that hold around 70 per cent of its first lien debt “to reduce the company’s outstanding indebtedness and strengthen its financial position”.

A number of stores will also be closed, it added.

JC Penney Company is one of the largest US apparel and home retailers, owning approximately 850 stores across the country. – Bernama