New York -- The Wall Street Journal reported Thursday that J.C. Penney is now in talks with Wells Fargo and at least two other investment firms, seeking a $500 million loan to shore up the beleaguered retailer’s cash reserves.
Citing unidentified sources, WSJ said that Penney is also in talks with private-equity firm TPG and with investment company Gordon Brothers, along with Wells Fargo, as Penney casts a wider net to stay afloat.
The $500 million loan, according to WSJ’s sources, would come due in five years and be backed by Penney's inventory, accounts receivable and intellectual property.
While Penney nor the financial companies have commented on the discussions, the sources said that the talks are currently active and a deal could be reached within days.
Penney had announced earlier in the week that it borrowed $850 million from its $1.85 billion revolving credit facility.