J.C. Penney goes into inventory liquidation, stock takes steepest hit in decades
Shares of the company's stock, which closed at $3.66 Thursday afternoon, had tumbled to $2.76 by the opening bell Friday - its largest stock drop in more than three decades.
Shares recovered some Friday afternoon, but were still shy of the previous day's close.
The company released a statement earlier Friday that warned it would undergo an inventory liquidation.
That, combined with recent store closures, highlight the struggles of brick-and-motor stores amid rising e-commerce sales.
"We took the necessary steps to accelerate inventory liquidation primarily across all apparel divisions, which increases available funding to invest in new and trending merchandise categories," J.C. Penney CEO Marvin Ellison said. ■