U.S. retailer J.C. Penney files for bankruptcy due to pandemic

A J.C. Penney store is seen closed in Frisco, Texas, the United States, on May 16, 2020. (Photo by Dan Tian/Xinhua)

J. C. Penney Company, one of the largest U.S. apparel and home retailers, has filed for bankruptcy and entered into a restructuring stage as the COVID-19 crisis is devastating the economy.

HOUSTON, May 16 (Xinhua) -- U.S. retail giant J.C. Penney filed for bankruptcy on Friday due to the impact of COVID-19.

The company said in a statement that it had entered into a restructuring support agreement with lenders that hold around 70 percent 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.

J. C. Penney Company is one of the largest U.S. apparel and home retailers, owning approximately 850 stores across the country.