The US department store chain JC Penney, which filed for bankruptcy on Friday, is reportedly the largest retail casualty of the pandemic-induced economic downturn so far.
The 118-year-old chain, which operates 846 stores and has 85,000 employees, is the latest US retailer to buckle under financial strain due to the coronavirus pandemic.
The chain follows J Crew, Neiman Marcus and Stage Stores, all of which have filed for bankruptcy protection in recent weeks.
The retailer said it would begin closing some stores permanently alongside its bankruptcy filing, with more details to follow in the coming weeks.
A report from Reuters suggested that the retailer intended to shutter around 200 stores, depending on negotiations with creditors.
Prior to the coronavirus outbreak, JC Penney was saddled with nearly $4bn worth of debt and faced a looming $105m debt payment in June, compounded by $300m worth of annual interest expenses.
At the height of its powers the business operated more than 1,600 stores and had nearly 200,000 employees, but over the years it has lost market share to competitors such as Walmart and Target, and recent store closures due to the coronavirus outbreak in the US have exacerbated the situation.
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