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Simon, Brookfield and Authentic Brands in talks to buy J.C. Penney
Retailer risks running out of cash for reorganization by July 14
J.C. Penney could be the next bankrupt retailer to get scooped up by Authentic Brands Group and the country’s largest mall owners.
The brand management company, along with Simon Property Group and Brookfield Property Partners, is in talks to acquire the retailer which filed for Chapter 11 protection in May, Bloomberg reported.
J.C. Penney’s proposed reorganization plan involves splitting out some of its property into a separate real estate investment trust. The company risks running out of cash if it does not solidify a plan by July 14.
Simon, Brookfield and Authentic teamed up earlier this year to acquire troubled retailer Forever 21 at the discount price of $81 million. Authentic and Simon are also in talks to acquire Brooks Brothers if it files for bankruptcy.
Brookfield Asset Management said in May that it was planning to invest $5 billion in retail companies hit hard by the coronavirus pandemic.
Authentic, which also acquired luxury retailer Barneys in October, could use its growing brand portfolio to supply new products for J.C. Penney’s shelves, according to Bloomberg.
Another buyer reportedly interested in acquiring J.C. Penney is private equity firm Sycamore Partners, which last month scrapped a deal to acquire Victoria’s Secret amid fallout from the coronavirus. [Bloomberg] — Kevin Sun