JC Penney is filing for bankruptcy

J.C. Penney is planning to file for bankruptcy protection, people familiar with the matter tell CNBC.

Its advisors are currently working on a bankruptcy filing that could come early Friday morning, they said. They cautioned there is still a chance that final negotiations between the retailer and its lenders spill into the weekend and delay the filing.

J.C. Penney employed roughly 90,000 full-time and part-time employees as of February. It is working on a plan that would contemplate closing 180 to 200 stores while in bankruptcy. The retailer had 846 department stores as of February.

The Plano, Texas-based retailer is planning on filing for bankruptcy in Corpus Christi, Texas, the people said. It has been negotiating with its first lien lenders a $450 million loan to finance the bankruptcy, which would require the troubled retailer to hit certain goals to receive the second half of it, CNBC previously reported.

Because it is working so quickly to finalize its bankruptcy documents, it may not get them all done in time to draw from the initial funds its first day in bankruptcy. As such, it may need to wait until a June 2 court hearing to begin drawing from the loan, the people said.

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