Authentic Brands, one of the most active bidders on bankrupt retail, is joining a deal to take over J.C. Penney.
The New York-based brand management company is reportedly in discussions with Simon Property Group and Brookfield Property Group to participate in their plan to rescue J.C. Penney, according to Business Insider.
Simon and Brookfield have agreed to buy the department store chain out of bankruptcy in a deal valued at $1.75 billion. A spokesperson for the retailer said that the sale of the company was only to the two bidders, making it likely that Authentic would supply J.C. Penney stores with products from its lineup of brands such as Nautica, Spyder, Vince Camuto and Nine West.
This is not the first time Authentic has partnered with Simon and Brookfield. Earlier this year, they teamed up to acquire the ailing fast-fashion store Forever 21 for $81 million. In 2016, Simon, Authentic and GGP, a retail owner that was Brookfield in 2018, purchased apparel chain Aeropostale.
Sandeep Mathrani, CEO of WeWork who previously served the chief executive of GGP, said teaming up with Authentic would benefit J.C. Penney’s landlords.
“It will give it an entree into many of the brands that Authentic controls,” Mathrani said. “How does a store win? It wins by having exclusive products.” [Business Insider] — Akiko Matsuda