Originally posted on CBS Dallas / Fort Worth:
NEW YORK (AP) - JCPenney Co. has amended its bank credit facility to increase its borrowing capacity as it looks to finance its multiyear transformation.
The department store chain said Tuesday it expanded the credit facility to $1.85 billion and got an option to increase that by another $400 million.
JCPenney’s previous facility had $1.75 billion of borrowing capacity, according to Deborah Weinswig of Citi Investment Research.
The Plano retailer said that the increase enhances its liquidity and provides it with additional financial flexibility to support its transformation.
The move comes as the struggling department store chain marks the one-year anniversary of a radical plan to get rid of most sales in favor of every day prices. The strategy is part of an overall plan spearheaded by CEO Ron Johnson to transform every part of the business from the brands it carries to the store experience.
But the overhaul has…
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