J.C. Penney’s lenders could take it over, liquidate assets

Struggling retailer was in talks with Simon Property Group and Brookfield Property Partners

National /
Sep.September 01, 2020 10:46 AM
J.C. Penney filed for bankruptcy May 15 and has since been in talks with large mall and retail operators (Getty; iStock)

J.C. Penney filed for bankruptcy May 15 and has since been in talks with large mall and retail operators (Getty; iStock)

J.C. Penney’s lenders are preparing to take control of the struggling retailer after discussions with its bidders have hit a dead end, Bloomberg News reported.

J.C. Penney filed for bankruptcy May 15 and has since been in talks with large mall and retail operators, including Simon Property Group and Brookfield Property Partners. But those discussions have reached a stalemate, according to Bloomberg.

If the lenders take control of the retailer it will likely lead to liquidation of its assets.

The company is looking to negotiate a debt-for-equity swap with its lenders in the next 10 days and is also still seeking new bidders, Bloomberg reported.

The lender group initially sought control of J.C. Penney’s real estate and then to sell its retail business.

After it filed for bankruptcy in May, J.C. Penney’s advisers said it had high interest from bidders. The company plans to close nearly a third of its 846 stores over the next two years as part of its bankruptcy restructuring. It will also lay off all of its employees in its Kings Plaza and Manhattan Mall locations. [Bloomberg] — Keith Larsen


Related Articles

arrow_forward_ios
A photo illustration of Mickey King of Antun’s in Queens Village and Jericho Terrace in Mineola (Getty, Great American Brokerage, Facebook/New York State Restaurant Association)
Tri-state roundup: LI restaurant feast on record sale
Tri-state roundup: LI restaurant feast on record sale
Jared Kushner and 666 Fifth Avenue (Getty, David Shankbone, CC BY 2.5 - via Wikimedia Commons)
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
SL Green's Marc Holliday and Daniel Boulud with One Madison Avenue (Getty, SL Green)
Daniel Boulud lands at SL Green’s One Madison Avenue
Daniel Boulud lands at SL Green’s One Madison Avenue
(Getty)
Strong November hiring reported in real estate industries
Strong November hiring reported in real estate industries
Rihanna with 8000 Mall Walk (Getty, Visit West Chester NY)
Rihanna’s Savage X Fenty heads to Yonkers
Rihanna’s Savage X Fenty heads to Yonkers
Why real estate shoppers are bagging grocery-anchored plazas
Why real estate shoppers are bagging grocery-anchored plazas
Why real estate shoppers are bagging grocery-anchored plazas
Macy’s CEO Jeff Gennette (Getty)
Macy’s converts 1M sf to fulfillment space
Macy’s converts 1M sf to fulfillment space
(Photo Illustration by The Real Deal with Getty)
Black Friday store traffic jumps, but sales don’t
Black Friday store traffic jumps, but sales don’t
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...