Struggling retailer J. C. Penney (NYSE: JCP) is expected to file Chapter 11 bankruptcy as early as this week according to a source close to the matter. The source states JCPenney has hired bankruptcy lawyers to proceed with the filing. Also noted, same store sales and online traffic has sharply decreased year over year, with this seasons holiday sales falling "nearly 11%" below expectations.

The decline has resulted in deep discounts as a desperate attempt to move inventory. Losses have accumulated to the point where debt has overwhelmed the Plano, Texas based retailer, and restructuring is now a must. "It's really terrible. The damage is beyond repair, so it's really no other choice." the source remarks.

Reporting a loss in 16 of the company's last 20 quarterly earning reports, J. C. Penney's business has been going downhill for years. Kimberly Greenberger, an analyst at Morgan Stanley states that the retailer's stock could drop to $1 due to soft fundamentals and Ebitda declining at a fast pace. With these new breaking developments of J. C. Penney's alleged financial meltdown, shares could now plummet to zero. Currently trading at $3.24 per share, JCP stock is down over 60% so far in 2017.