By Chris Isaac
JCPenney is finally closing in on wrapping up a deal with its new owners, Simon Property Group, and Brookfield Property Group.
This comes after the historic department store had to file for bankruptcy in May, and initially appeared to be having trouble finding a buyer. However, as reported by Kerri Panchuk of Bisnow, the situation quickly became a matter of too many interested parties, as a bidding war complicated the process of making a deal sooner.
Simon and Brookfield had made their offer back in the summer and seemed to have shut out the competition, but then a number of the lenders for JCPenney started making overtures of their own. However, at long last the dust finally seems to have settled, and the deal is expected to be finalized by December.
JCPenney put out their official word on the matter, stating, “JCPenney’s operating assets will then conduct business outside of the Chapter 11 process under the JCPenney banner with Simon and Brookfield as its owners.”
While Simon Property Group buying up retailers in recent years has marked an unusual deviation from their longtime status as mall owners, the struggles of 2020 have necessitated new strategies from those in the retail world. Without intervention, the financial damage from the pandemic would have spelled the end of Penney.
The retailer already closed over 150 stores during the summer. It’s difficult to say how many jobs this bailout will wind up saving, as the department store gets its reprieve to live on through this difficult year.
If you want to learn more about the developments Simon Property Group has been making, check out the article at Bisnow by clicking here.
You Might Also Like