Macy's, which operates its namesake stores as well as the Bloomingdale's chain, said in December that it reached a deal to amend its credit agreement which it said should remove any doubts about its ability to retire $950 million in debt that is maturing this year.

Last week, Penney's chief executive, Myron "Mike" Ullman, said he was planning business conservatively for 2009, adding that retailers should focus on financial security and cash.

Penney's shares were down to $17.39 on the New York Stock Exchange amid a wider market drop. (Reporting by Aarthi Sivaraman in New York and Karen Jacobs in Atlanta; Editing by Leslie Gevirtz, Phil Berlowitz)