August 1, 2020

Business JCPenney has hired brokers to sell off 163 locations across the US as the department-store chain slashes its footprint and tries to emerge from bankruptcy


  • JCPenney is selling off the leases for 142 stores it occupies and 21 stores it owns accurate via the nation.
  • The dispositions are section of a thought by the bankrupt retailer to dramatically cull its portfolio of nearly 850 stores and decrease prices.
  •  An person inquisitive relating to the sale of the stores and leases said more locations is also equipped to patrons within the impending months.
  • Consult with Enterprise Insider’s homepage for more reports.

Bankrupt department-retailer chain JCPenney is attempting dump real property because it navigates via Chapter 11 with a thought to emerge via a sale of the stamp.

The firm has hired Cushman & Wakefield and B. Riley Right Estate to market 21 stores it owns and the leases for yet every other 142 stores accurate via the nation to ability patrons, in step with advertising and marketing supplies considered by Enterprise Insider. 

“We have not got any touch upon the stores or leases we’re selling,” a spokeswoman for JCPenney said. 

“There’s all forms of interest and there are some trusty properties here,” said Jim Terrell, a fundamental at the exact-property companies and products and brokerage firm B. Riley Right Estate. “There are residential investors who can also redevelop these properties and there may be storage gamers who can also utilize them for logistics. And then you definately can also procure outlets themselves who can also rob it.”

JCPenney had beforehand said it’s closing 151 locations this year and 242 locations in total as section of its monetary effort.

Michael Jerbich, B. Riley Right Estate’s president, who’s working on the offers to gain rid of the locations for the department-retailer stamp, said the leased retailer locations would possible all be closed and bought off by the autumn. Bids are due for the leases by mid-September.

The owned stores can also possess longer to sell, he said.

“The owned properties are quiet working and their closing dates will fluctuate, with some persevering with to operate for some time whereas others can also halt sooner,” Jerbich said.

Jerbich instructed that JCPenney can also offer other locations among the nearly 850 stores it occupies for sale within the impending months.

“Though there must no longer further stores being equipped for sale presently, that can also alternate as the process evolves,” he said.

JCPenney’s monetary effort lawyer this week said the firm has received bids from alive to patrons and that a sale can also elevate it out monetary effort and assign it abet on a solid monetary footing. Quite quite a bit of patrons had been reported to be searching at the stamp, collectively with the non-public-equity firm Sycamore and even the e-commerce wide Amazon.

Have a tip? Contact Daniel Geiger at [email protected] or via encrypted messaging app Designate at 1 (646) 352-2884, or Twitter DM at @dangeiger79. That you just may additionally contact Enterprise Insider securely via SecureDrop.

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