The skipped payment comes after Reuters reported that Penney is considering a bankruptcy filing to "rework its unsustainable finances and save money on looming debt payments, which include significant annual interest expenses" in hopes of continuing operations. The 118-year old company is burdened with nearly $4 billion of long-term debt. (Penney has the second-most debt of any distressed retailer at $4.2 billion, according to Moody's Investor Service, second to luxury retailer Neiman Marcus Group.) The retailer is also considering asking creditors for breathing room through transactions that would rework debt outside of bankruptcy court proceedings, the report said. Penney "has been engaged in discussions with its lenders since mid-2019 to evaluate options to strengthen its balance sheet and maximize its financial flexibility, a process that has become even more important as our stores have also closed due to the pandemic," a company spokeswoman told Reuters.