J.C. Penney said Wednesday it has secured a $2.25 billion loan, $500 million more than it had expected, as it tries to stop a collapse in its sales.
The expanded financing deal with Goldman Sachs comes as the Plano, Texas-based retailer has been burning through cash and struggling to win back customers. An overhaul plan spearheaded by its former CEO Ron Johnson had backfired and caused sales to plummet.
The company last month fired CEO Johnson after 17 months on the job and brought back Johnson's predecessor, Mike Ullman, to take over the top spot. UIlman is bringing back sales and coupons and basic merchandise that were eliminated under Johnson's regime.
Johnson's strategy led to massive financial woes at Penney. The company reported last week that its first-quarter loss widened as revenue dropped 16 percent. It was the fifth-straight quarter that the company had posted large sales declines. Penney lost almost $1 billion last year and its revenue dropped 25 percent to $12.98 billion.