JC Penney stock plummets after credit squeeze report

Wednesday, 31 Jul 2013 | 4:26 PM ET
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Commercial lender CIT has stopped supporting deliveries to JC Penney stores from smaller manufacturers, according to a report from the New York Post, citing a source close to the situation.

After the report, which came out just before the closing bell, JC Penney stock start falling, ending down 10 percent. (Click here to track the company's shares in after-hours trade.)

JCP down after hours
Dana Telsey, Telsey Advisory Group, joins on the phone to discuss JCPenney concerns. "It is going to take quite a long time to get back on track."

While the Post reported it couldn't confirm the reason for the credit problem, it said insiders speculated the company's financials made the company skittish. (Read more from the New York Post's article here.)

"CIT met with (Penney officials) yesterday," according to a source close to the situation quoted by the Post. "I assume they got a thorough briefing and didn't like what they heard."

Following the report, a CIT spokesperson said, "We do not comment on specific customers."

JC Penney did not immediately return CNBC's requests for comment.

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