Penney CEO sees more retail bankruptcies ahead

By MARIA HALKIAS / The Dallas Morning News

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J.C. Penney Co. chairman and chief executive Myron “Mike” Ullman said Wednesday that 10 to 20 retail chains could go out of business before U.S. consumers regain their strength.

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Specialty retailers in fine jewelry and home furnishings have already filed bankruptcy, he said, and regional chains that don’t have the cost structure to maneuver a downturn will have a difficult time getting through this period.

Looking at the impact of past cycles on the department store sector, he said, there were 65 department store companies 30 years ago. “Now we have a couple of solid competitors that we respect."

“We expect 10 to 20 companies to find it difficult to get through this period,” Mr. Ullman said while speaking Wednesday to analysts at the Lehman Brothers 11th Annual Retail and Restaurant Conference in New York.

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