JCPenney is working with experts at turnaround firm AlixPartners to help identify cost savings and manage cash flow as the struggling retailer pursues a new loan to shore up its finances, people familiar with the matter said.
The AlixPartners experts are focused on ways to save money and aren’t pursuing a broad turnaround or restructuring plan, the people said. Possible cost-savings opportunities could include consolidating distribution centers, one person said.
Penney has been working with AlixPartners for a month or so, beginning before former CEO Mike Ullman was brought back in to replace Ron Johnson.
Morgan Stanley yesterday maintained an Underweight rating on Penney and lowered its price target to $9 (from $13).
Also, the company confirmed that Executive Vice President of Real Estate and Construction Benjamin Fay has left the company, as The Post first reported Monday.