New York -- J.C. Penney Co.’s stock on Wednesday plunged to a 13-year low of $10.12 at the end of trading. The stock fell to $9.94, the lowest since January 2001, before recovering up to $10.12.
Industry experts credited the 15% plunge to reports that the chain did not have a good back-to-school season, with sales falling at the end August and into September. Investors have also been made wary by recent reports have indicated that the chain needs to raise more cash.
In a research note on Penney’s credit, Goldman Sachs raised concerns about the chain’s sales. "We expect 3Q and 4Q to be difficult, with comp store sales likely showing a slower-than-expected improvement,” Goldman said.
Last week, it was reported that Penney was trying to raise additional cash on top of the $3 billion it already had borrowed this year.