JCPenney Is Closing Another 140-Plus Stores as It Seeks to Exit Bankruptcy
The J.C. Penney Company Inc. continues to reduce its stationary footprint to end bankruptcy.
In a report filed Thursday with the US bankruptcy court for the southern district of Texas, the beleaguered chain revealed plans to close an additional 144 stores across the country. Along with the 150+ closures already announced, JCPenney has announced about 300 shutdowns during its Chapter 11 process.
The move comes a month after the department store reached an agreement to sell its business to Simon Property Group and Brookfield Property Partners. As part of the deal, the mall giants plan to acquire "essentially all of JCPenney's retail and business assets" for $ 1.75 billion using a combination of cash and debt.
In addition to selling its business, JCPenney is forming a separate real estate investment fund and holding company consisting of 161 of its real estate assets and all of its own distribution centers. (On its website, the company said it operates a supply chain network of 11 facilities, including distribution centers, regional warehouses, online fulfillment centers, and furniture distribution centers.) According to JCPenney attorney Joshua Sussberg of Kirkland & Ellis, the deal is expected to be completed Keep more than 600 stores and 70,000 jobs intact.
Bankruptcy judge David Jones has yet to sign the agreement, which was challenged just this week when Aurelius Capital Management-led debtors announced their intention to bid on six of the retailer's distribution centers and the above 161 stores. The judge gave the investment firm time to come forward with its plan before the end of next week, when the Simon Brookfield deal is expected to be approved.
After JCPenney struggled with declining sales, numerous leadership changes, and increasing digital competition for several years, JCPenney filed for Chapter 11 protection down 242 doors on May 15. In late August, a judicial filing revealed that the net loss for the month ended July 20 was $ 342.1 million while revenue was $ 564.3 million, compared to an income of $ 46.2 million and one Sales of $ 621.7 million in June.
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