JCPenney gets SEC inquiry regarding its financial position
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.