JCPenney Telling Vendors It Will Go to 90-Day Terms Next Year

JCPenney’s financial performance has been pretty much a black box ever since it came out of bankruptcy in 2020 as a private company owned by real estate investors.

But we may be getting a window into its finances now: an unknown number of vendors have received letters saying the retailer is going to 90-day payment terms next May which could be a telltale sign of cash flow problems and profitability. Standard payment terms are usually 30 days in retail and some, notably in the off-price sector, will pay as quickly as ten days.

“Going forward, our standard international merchandise vendor terms are Net 90 days,” it said in a letter dated July 11 that at least some vendors received last week. Penney said the change in terms would be effective for all orders with delivery dates starting on May 1, 2024.