J.C. Penney Pays April Rent With Other Retailers Holding Back

(Bloomberg) -- J.C. Penney Co. says it paid its rent for April, while other retailers withhold payments as the coronavirus outbreak shuts down the economy.

Tensions between retailers and landlords have been brewing across the U.S. with more than $20 billion of rent payments on the line. Retail and restaurant chains including Mattress Firm and Subway have told landlords they will postpone or slash payments.

There is typically a grace period to pay rent after the first of the month, but many landlords are expecting a wave of defaults.

J.C. Penney has nearly 850 stores in the U.S. A landlord with a handful of those locations, who asked not to be named because the matter is private, said the company did not ask for rent concessions.

Like its rivals, J.C. Penney has shuttered its stores in the U.S. indefinitely and is furloughing the majority of its hourly employees. Fitch Ratings on Wednesday downgraded J.C. Penney, noting that revenue could decline over 25% in 2020. The company shares have traded below $1 since January.

A representative of the company declined to comment on whether or not it has received concessions on rent.

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