Simon Property Group and Brookfield Property Partners, the biggest mall owners in the United States, and Authentic Brands Group LLC are in talks to acquire bankrupt department-store chain JC Penney, according to a Bloomberg report, citing people familiar with the matter.
JCPenney, the 118-year-old company, has filed for Chapter 11 protection bankruptcy in May. Two weeks ago JC Penney announced the closing of 154 stores as a part of its store optimization strategy.
”Following entry of an order at the June 11, 2020, hearing with the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, Texas, store closing sales will begin at 154 locations,” said the company in a statement.
J.C. Penney has been racing to firm up a business plan by a July 14 deadline, after which the company risks running out of cash to finance its reorganization and emerge from bankruptcy court, says Bloomberg in the report.
Brookfield Asset Management announced in May a $5 billion retail revitalization program to recapitalize retail businesses in the major markets in which Brookfield operates globally.
Brookfield Properties, a unit of Brookfield Asset Management, is managing and leasing one of the largest retail portfolios in the United States, encompassing 170+ locations across 43 states and representing over 146 million square feet of leasable space.
Simon Property Group is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company.
Authentic Brands Group LLC is a New York City-based brand development, marketing, and entertainment company which owns a global portfolio of entertainment and lifestyle brands.