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JCPenney gets SEC inquiry regarding its financial position

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Department store chain JCPenney Co said it received a letter of inquiry from the U.S. Securities and Exchange Commission, seeking an explanation on the company's financial position.

Shares of the retailer fell in extended trade after closing down at $8.85 on the New York Stock Exchange.

(Read more: J.C. Penney dropped from S&P 500 index)

The company said the SEC requested information on October 7 regarding its liquidity, cash position, debt, and public offering of common stock announced on September 26.

A J.C. Penney shareholder had earlier sued the company when it announced its decision to issue more than $810 million in stock to boost liquidity.

(Read more: Shop carefully for retail stocks this year)

The company said it is cooperating with the U.S. regulatory body on its request and providing the necessary material, in a regulatory filing with the SEC.

The company has been desperately trying to turn its fortunes around since its failed attempt in 2012 to go upmarket.

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