PLANO, Texas (AP) — J.C. Penney says that CIT, the largest lender in the clothing industry, is still supporting deliveries from its suppliers. The department store operator also stressed it has ample liquidity to run its business.
J.C. Penney shares jumped 8 percent in premarket trading Thursday.
On Wednesday a New York Post report said that CIT had stopped providing financial support to small and large suppliers selling to Penney stores — for now. The report said CIT made the decision after meeting with Penney officials to examine the company's books.
J.C. Penney Co. said Thursday that it still has the support of all of its key vendors, which are continuing shipments to the company. The retailer anticipates closing the quarter with about $1.5 billion in cash on its balance sheet.
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