J.C. Penney is reportedly moving along the path toward a bankruptcy filing.

Embattled retailer J.C. Penney (ticker: JCP) is in talks with banks for a loan of $800 million to $1 billion to sustain at least some of operations during a bankruptcy process, according to a Wall Street Journal report citing people familiar with the matter, who said the final amount of the financing could change. These types of cash infusions are known as debtor-in-possession loans.

The...