J.C. Penney (NYSE:JCP) shares abruptly fell 10.2% Wednesday after a report surfaced that commercial lender CIT Group stopped supporting deliveries from smaller manufacturers to the struggling retailer’s stores.
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According to the New York Post, insiders were speculating that CIT became nervous after seeing J.C. Penney’s financials when it met with company officials Tuesday.
A source close to the situation told the newspaper that CIT likely “got a thorough briefing and didn’t like what they heard.”
A CIT spokesperson said the company does not comment on specific customers. J.C. Penney did not immediately respond to a request for comment.
The Plano, Texas-based retailer is trying to turn things around after former Chief Executive Ron Johnson’s everyday-low-price strategy failed to attract customers. In April, the company brought back former CEO Mike Ullman to take the helm.
Shares ticked higher in after-hours trading, rising eight cents to $14.68.