JC Penney lenders to make bid for department store in bankruptcy


An empty parking lot is seen outside a closed JC Penney Co. store in Mt. Juliet, Tennessee, on Thursday, April 16, 2020.

Luke Sharrett | Bloomberg | Getty Images

Talks had been progressing with three potential bidders, including the mall owners Simon Property Group and Brookfield, to salvage the department store chain J.C. Penney — and possibly keep hundreds of stores open for business. 

But those discussions have since hit a “stalemate,” and time is running out to keep the company alive, according to the department store chain’s attorney. 

Penney’s top lenders, including H/2 Capital Partners, are now set to make a credit bid to own the retailer as a standalone company, attorney Joshua Sussberg of Kirkland & Ellis said during a Monday bankruptcy court hearing. He said the transaction should be completed within 30 days. 

“Our lenders are no longer going to be held hostage in negotiations with third parties,” Sussberg said. “While it is possible that one of the bidders comes back into the transaction, we can no longer stand idly by and allow for negotiating postures to stand in the way of 70,000 jobs and our vendor base.” 

He added that Penney is set to close a number of additional stores, as talks with bidders have fallen through. The department store chain last month announced it would be laying off roughly 1,000 employees, as it moved forward with shutting about 150 locations across the U.S. When it filed for bankruptcy, it was still operating about 860 stores. 

“Several locations that were on our original closing list but were removed … because of negotiations … will be closed promptly,” Sussberg said. 

Penney filed for Chapter 11 bankruptcy protection on May 15, weighed down by debt and battered by the coronavirus pandemic. 

At the end of July, Sussberg had said during a virtual hearing that Penney was moving forward with a sale set to be completed by this fall. A liquidation was “not in the cards,” he said at the time. 

The three bidders for Penney had included the private-equity firm Sycamore, a duo of Simon and Brookfield, and Saks Fifth Avenue owner Hudson’s Bay Co., according to a person familiar with these discussions. 

This story is developing. Please check back for updates. 



Source link

Discover

Sponsor

Latest

All the issues and problems the shot has faced

Covid vaccinator, Petra Moinar, prepares syringes with the AstraZeneca vaccine before it is administered at Battersea Arts Centre on March 8, 2021 in...

Chaga and COVID-19

submitted by /u/DiscombobulatedAd972 Source link

Winklevoss’ crypto exchange Gemini offers 2.25% interest

Cameron Winklevoss, left, and Tyler Winklevoss David Paul Morris | Bloomberg | Getty ImagesGemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, is...

Coca-Cola will cut 2,200 jobs worldwide as part of restructuring plan

Cans produced for Coca-Cola Co.'s Coke drink move along the production line.Chris Ratcliffe | Bloomberg | Getty ImagesCoca-Cola will cut about 2,200 jobs...

Ferrari SF90 Spider plug-in-hybrid supercar unveiled

The new Ferrari SF90 Spider has been unveiled as the open-top sibling to the Prancing Horse's SF90 Stradale. The SF90 Spider thus becomes...