Experts are doubtful J.C. Penney will survive economic downturn

J.C. Penney filed for bankruptcy Friday, becoming the largest and fourth major retailer to do so during the coronavirus pandemic.

Neiman Marcus, J. Crew, and Stage Stores had previously filed, and many others are expected to follow suit as U.S. retail sales plummeted by a record 16.4 percent from March to April. Penney, which has been around for 118 years, said it will close some stores throughout the process.

CEO Jill Soltau said the company had made "significant progress" in its rebuilding efforts before the pandemic hit, but the virus has "created unprecedented challenges."The Associated Press reports that many experts are now skeptical about its long-term survival, even as the retail giant looks at a few different options, including the sale of the company, to save itself.

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That's because its middle-to-low income customers have been hit the hardest by coronavirus-related layoffs. When they eventually return to shopping there's a good chance they'll choose Penney's discounter competitors, like Macy's, T.J. Maxx, or Walmart, Ken Perkins, president of retail research firm Retail Metrics, said. All of those companies had already presented a challenge for Penney, which has seen five straight years of declining sales. Read more at CNN and The Associated Press.