J C Penney Company Inc (NYSE:JCP) has recently rolled out new showrooms as it finally sells major appliances again after more than three decades. The launch of these showrooms in 500 retail locations is anticipated to be completed this fall. The appliances will also be available online soon.
J C Penney’s Appliance Comeback
Accordingly, each store will feature 100 to more than 200 major appliances such as dishwashers, dryers, refrigerators, washing machines, among others from leading companies such as General Electric Company (NYSE:GE), LG Electronics (KRX:066570), Samsung Electronics Ltd., Whirlpool Corporation (NYSE:WHR) Hotpoint Electric Heating Co.
To attract consumers, the company is providing them with exclusive privileges such as free delivery services, zero-interest financings, and loyalty program reward points.
Corporate Leadership Changes
Effective August 1, Marvin Ellison, J C Penney CEO, has been seated as the Chairman of the Board, further ramping up his responsibilities. The move fulfills the corporate transition plans the company had introduced in 2014, with Myron Ullman, III retiring from the said post.
Ullman, III believes that Ellison is the perfect fit for the position given his leadership prowess as the CEO, which has been significant for J C Penney over nearly the last two years.
Meanwhile, Ronald Tysoe, will continue to be the Lead Independent Director of J C Penney.
J C Penney Corporation, Inc. $2.25B Refinancing Fulfilment
Last month, J C Penney has confirmed the completion of the refinancing of the five year senior secured term loan credit facility worth $2.25 billion for its subsidiary, J C Penney Corporation, Inc.
Accordingly, it comes with amended $1.69-billion seven-year senior secured term loan credit facility, which comes with a lower interest rate. The company has also extended its maturity to 2023 from 2018.
Ellison noted that the support of the company’s investors was vital in the decisions of lowering rates and extending term loan maturity.
The proceeds, which J C Penney expects to come at about $24 million in annualized interest expense savings, are intended for the complete repayment of an outstanding principal balance of the 2013 loan credit facility.