J.C. Penney completes new $1.25 billion credit facility
Plano, Texas — J. C. Penney Corp. has completed a new five-year $1.25 billion bank credit facility.
The new facility replaces a $750 million credit facility that was scheduled to mature in April 2012 and provides further strength to the company’s liquidity position. The facility may be used for general corporate purposes and will mature in April 2016.
Supervalu to offer Coinstar’s no-fee option in more stores
BELLEVUE, Wash. — Supervalu customers that cash in their coins at in-store Coinstar kiosks can do so for free when they select the Supervalu gift card option, Coinstar announced.
The no-fee option will be available in about 1,000 stores that operate under the Supervalu banner, including such chains as Acme, Albertsons, Jewel-Osco and more, by next month.
Supervalu and Coinstar began their collaboration on the gift card project last January in approximately 78 Albertsons stores located in Washington and Oregon.
"We are very pleased with the results of the pilot program with Coinstar and look forward to a program expansion starting in June," said Mark Schumacher, Supervalu’s director of financial services. "This agreement provides our customers the opportunity to receive the full value of their coins with no fees when they choose the gift card option."
Added Mike Skinner, president of Coinstar’s coin business, "We’re delighted to be moving forward on this exciting new project with Supervalu and look forward to maximizing the potential increase in both trips and shopping basket size at Supervalu stores. There’s approximately $10 billion in coins across the U.S. waiting to be converted, and this gives consumers a compelling option for turning those coins into something of great value."
Borders reports operating loss
New York City — Borders on Friday reported a loss of $24.3 million for the month ended March 26, according to court papers, Bloomberg said.
The company’s most recent financial report filed before Friday showed a loss of $479.9 million for the year ended Jan. 29, on revenue of $1.67 billion.
The current report shows revenue of $165.2 million for the month ended March 26 and total assets of $942.2 million. Cash and equivalents are $80.9 million.
The financial report came after the U.S. Trustee, a bankruptcy watchdog for the Justice Department, raised doubt as to whether Borders can pay the costs accrued after its petition, or bankruptcy date, Bloomberg reported. The Trustee cited the lack of an operating report to show the company’s financial state, and said the company should be denied requests to pay lawyers and other professionals.
“It is impossible to determine if the debtors are paying their non-professional administrative expenses on a timely basis and have the financial wherewithal to pay the fees and expenses requested by their professionals,” lawyers for U.S. Trustee Tracy Hope Davis wrote in papers filed before Friday’s financial report.
Under an agreement with liquidators approved Feb. 17, Borders sold the content of some store locations in exchange for at least $155 million for the rights to sell all inventory at those stores.