New York (CNN Business) The situation at troubled retailer JCPenney got more serious as the company missed a $12 million debt payment due Wednesday.

The company said that it has a 30-day grace period to make the payment.

"JCPenney made the strategic decision to ... take advantage of the 30-day grace period to continue ongoing discussions with lenders and maximize financial flexibility," said the company's statement. "JCPenney has been engaged in discussions with its lenders since mid-2019 to evaluate options to strengthen its balance sheet, a process that has become even more important as our stores have also closed due to the pandemic."

Late Tuesday and Wednesday, Reuters and USA Today reported that the chain is talking to advisors about possibly using bankruptcy to restructure its debt.

JCPenney JCP Shares ofwere down as much as 36% in morning trading on those reports before they came off the lows to fall only 10% in early afternoon trading. But news of the missed payment sent shares lower again, as they closed down 27%.

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