JCPenney, which has been facing issues with debt for the past few months, is looking to ease its load by preparing for talks with creditors.
The company wants to be fully prepared for the upcoming holiday season which is the period of increased sales.
The firm is not expected to file for bankruptcy, but a report by Bloomberg states that some of its advisers and bondholders will sign nondisclosure agreements to be allowed access to confidential company information and further the talks on decreasing the debt load.
In mid-July, the company hired restructuring advisors to help get its financials in order.
JCPenney has roughly US $ 4 billion in debt coming due over the next few years. While its sales have been declining and the holiday season might be a chance for the brand to resuscitate itself.
The 117-year-old department store chain brought in a new CEO, Jill Soltau, who has been trying to effect a turnaround. Apart from closing down some stores, the company has explored debt restructuring options, redesigned dressing rooms and started hosting classes in its home department to teach shoppers how to do things like choosing the right window treatment.