SPG - J.C. Penney's Landlords May Be Buying the Retailer to Keep It Afloat
According to sources said to have direct information, J.C. Penney (NYSE: JCP) may be currently working out a deal to be bought out by its own landlords, Brookfield Property Partners (NASDAQ: BPY) and Simon Property Group (NYSE: SPG). A third company, privately held Authentic Brands Group, LLC, is apparently in alliance with the retailer's landlords to work out an acquisition deal.
J.C. Penney recently declared Chapter 11 bankruptcy after store closures from the COVID-19 pandemic sent its already struggling operations into a tailspin. The bankruptcy saved J.C. Penney from immediate liquidation, but put it on a tight schedule to reforge itself into a financially functional company or face the prospect of being liquidated anyway.
Image source: J.C. Penney