Tags: jc penney | stores | close | bankrupt

JC Penney Reportedly Closing 13 More Stores

JC Penney Reportedly Closing 13 More Stores
(Mark Milstein/Dreamstime)

By    |   Tuesday, 23 June 2020 11:14 AM

Bankrupt retailer J.C. Penney Co. reportedly is closing more than a dozen additional stores.

The closures include two in New York and one in California, CNBC reported.

The list faces bankruptcy court approval.

Going-out-of-business sales are set to begin on or around July 3, USA Today explained.

J.C. Penney, which employs roughly 85,000 people, filed for bankruptcy protection in May after the coronavirus pandemic forced it to temporarily close its more than 800 stores across the United States, compounding financial woes that stemmed from years of dwindling sales.

J.C. Penney previously released a list of 154 stores that it planned to close this summer, with store closing sales kicking off this month. It started liquidation sales at 136 locations last week.

To see a list of the 13 stores, click here now:

Earlier this month, Reuters reported that private equity firm Sycamore Partners is in preliminary talks to acquire J.C. Penney out of bankruptcy should the U.S. department store chain's negotiations with its creditors fail.

Sycamore is weighing acquiring J.C. Penney outright or making an investment in the troubled retailer, three people familiar with the matter told Reuters.

There is no certainty that the talks between Sycamore and J.C. Penney will result in a deal, which would require a bankruptcy judge's approval, the sources said.

J.C. Penney is also in touch with some of its landlords, including Brookfield Asset Management Inc and Simon Property Group, about possible transactions, the sources said. Under one scenario being explored, Sycamore, Brookfield and Simon would join forces on a bid for J.C. Penney, two of the sources said. Wells Fargo & Co is also involved in the discussions, one of the sources said.

J.C. Penney shares surged 47% after Reuters reported on the talks, ending the day up 55% to close at 32 cents.

The sources requested anonymity because the discussions are confidential. Sycamore and J.C. Penney declined to comment. Brookfield had no immediate comment while Simon and Wells Fargo did not immediately respond to requests for comment.

J.C. Penney is in discussions about handing over control to its lenders in exchange for reducing its nearly $5 billion of debt. This hinges on a slew of investment firms that hold the company's senior debt and have provided the company's bankruptcy financing agreeing to J.C. Penney's business plan by July 14.

If the Plano, Texas-based company does not persuade enough lenders to approve its plan by the following day, July 15, the terms of its bankruptcy loan require J.C. Penney to abandon its reorganization efforts and pursue a sale.

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Bankrupt retailer J.C. Penney Co. reportedly is closing more than a dozen additional stores.
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Tuesday, 23 June 2020 11:14 AM
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