Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Omaha Steve

(99,072 posts)
Wed Sep 9, 2020, 06:18 PM Sep 2020

Mall owners close to buying JC Penney out of bankruptcy

Source: AP

By ANNE D'INNOCENZIO

NEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a deal to buy department store chain J.C. Penney out of bankruptcy and keep the chain running.

Penney’s lawyer Josh Sussberg announced the tentative pact, which will save roughly 70,000 jobs and avoid liquidation, during a brief hearing in bankruptcy court Wednesday.

Sussberg said that the Penney would have an enterprise value of $1.75 billion, including $300 million in cash from the two landlords and $500 million in new debt.

He noted that a letter of intent including more details of the pact will be filed with the bankruptcy court in the next day. Penney will be left with $1 billion in cash after the deal is completed, he said.



FILE - In this Nov. 24, 2017, file photo, a shopper heads into a J.C. Penney store in Seattle. Mall owners Simon Property Group and Brookfield Property Partners are close to a deal to buy department store chain J.C. Penney out of bankruptcy and keep the chain running, an attorney for Penney's announced Wednesday, Sept. 9, 2020. (AP Photo/Elaine Thompson, File)


Read more: https://apnews.com/414ea26531a8e52bace148660de58472

21 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Mall owners close to buying JC Penney out of bankruptcy (Original Post) Omaha Steve Sep 2020 OP
Bring back the catalogue. LakeArenal Sep 2020 #1
They should bring it back SoCalNative Sep 2020 #2
They already have an online store. JI7 Sep 2020 #11
Then have it on pdf format? Crowman2009 Sep 2020 #15
Why ? JI7 Sep 2020 #16
I don't know, maybe because I'm old-school and want to window shop when the internet isn't working. Crowman2009 Sep 2020 #17
Most modern online stores change prices and inventories constantly. Codeine Sep 2020 #21
that $1 billion in cash will be romney'd in a flash. nt msongs Sep 2020 #3
Not sure it will... Happy Hoosier Sep 2020 #20
I like their men's clothes left-of-center2012 Sep 2020 #4
I like their ladies clothes MissMillie Sep 2020 #19
Mall owners have subsidized other chains bucolic_frolic Sep 2020 #5
This would be a simple transfer of Wellstone ruled Sep 2020 #6
Wonderful! Love jcpenney. Owl Sep 2020 #7
Good news! 👍 nt Raine Sep 2020 #8
The Simon Group owns the huge King of Prussia Mall in the suburban Philly area BumRushDaShow Sep 2020 #9
Awesome news! nt iluvtennis Sep 2020 #10
Interesting development Sherman A1 Sep 2020 #12
Vancouver Washington SamIam715 Sep 2020 #13
While no fan of Hobby Lobby Sherman A1 Sep 2020 #18
LOL! Xolodno Sep 2020 #14

SoCalNative

(4,613 posts)
2. They should bring it back
Wed Sep 9, 2020, 06:37 PM
Sep 2020

but online only. That's the only way that they would be able to sustain that business model now.

Crowman2009

(2,478 posts)
17. I don't know, maybe because I'm old-school and want to window shop when the internet isn't working.
Wed Sep 9, 2020, 10:20 PM
Sep 2020

It helps to have an offline digital copy sometimes.

 

Codeine

(25,586 posts)
21. Most modern online stores change prices and inventories constantly.
Fri Sep 11, 2020, 08:39 PM
Sep 2020

I don’t think a static catalog makes sense in a modern online enterprise. Just taking the existing business model and plopping it online was a massive failure for everyone who ever tried it.

MissMillie

(38,454 posts)
19. I like their ladies clothes
Thu Sep 10, 2020, 07:54 AM
Sep 2020

It's always been a place where I could find clothes that didn't need a lot of alterations. I'm short and things need to be shortened, but if a pair of pants fit in the waist, they fit in the hips and fit in the thighs.

Of course, I haven't been able to afford any new clothes in quite a while. But if I were looking, that's where I'd be headed.

bucolic_frolic

(42,676 posts)
5. Mall owners have subsidized other chains
Wed Sep 9, 2020, 07:11 PM
Sep 2020

Aeropostale for one, I read last year. My closest biggest mall is 1/2 empty, 2 of 4 anchor stores empty for years. JCP is one of the remaining, the other MACY's. Mall owners are acting to save themselves, and who can blame them.

What happened to the deal with Belk? That sounded like more of a rebranded downsizing to fit local conditions.

Imagine the shopping when the Pandemic is over!

Smart move.

BumRushDaShow

(127,312 posts)
9. The Simon Group owns the huge King of Prussia Mall in the suburban Philly area
Wed Sep 9, 2020, 07:34 PM
Sep 2020

(originally largest in the country before the Mall of America opened)



I, like many others, grew up with Penney's and I even had a JCP card too when I got out of college and first started working years ago. I have some of their bedspreads up in my linen closet (it was hard to find actual "bedspreads" for a decent price that weren't comforters), so as they have closed stores, I have bought from them online and they were quick to ship.

I expect that they want to keep it and/or add it back as an anchor store for many of the malls they own.

Sherman A1

(38,958 posts)
12. Interesting development
Wed Sep 9, 2020, 09:01 PM
Sep 2020

I hope this strategy works out for all concerned, keeping stores open, people employed and anchors at the malls.

SamIam715

(44 posts)
13. Vancouver Washington
Wed Sep 9, 2020, 09:42 PM
Sep 2020

Mall JCP stays open because of the optical shop and salon. Good news if it's able to survive. Hobby Lobby went in where they closed the Sears store😠

Sherman A1

(38,958 posts)
18. While no fan of Hobby Lobby
Thu Sep 10, 2020, 05:20 AM
Sep 2020

Or as I call them Looty Booty they still provide jobs, rent and tax revenue for the community. I really hope this deal works for all involved.

Xolodno

(6,334 posts)
14. LOL!
Wed Sep 9, 2020, 09:56 PM
Sep 2020

During the late 80's and 90's, numerous anchor chains merged. Wasn't such a big deal since a lot of them were an anchor in one mall but not the other.

Then shit hit the fan and bankruptcies followed. One mall I used to frequent when I lived near by had an empty Broadway chain store practically forever. They used it for everything, from a temporary trampoline park to a Halloween maze. Once Sears left the mall, they tore down the old Broadway section. I remember when they converted it from a single level mall to double, now they are shrinking it.

They are buying JCPenny not save it...but to save themselves. Less Stores => Less Shoppers => Less Rent =>Less Stores => Less Shoppers => Less Rents => No Stores => No Shoppers => No Rent

Latest Discussions»Latest Breaking News»Mall owners close to buyi...