3 Things J.C. Penney's New Owners Need to Do, Fast
It's (more or less) official. Mall owners Simon Property Group (NYSE: SPG) and Brookfield Property Partners (NASDAQ: BPY) have agreed to acquire beleaguered department store chain J.C. Penney (OTC: JCPN.Q) out of bankruptcy. The somewhat complex deal -- its previous lenders are still lenders, and a new real estate investment trust (REIT) will own much of its real estate -- is expected to be completed before the end of this year. More importantly, it keeps the 118-year-old chain alive.
But none of this dealmaking changes the fact that J.C. Penney is struggling for a reason. Its operational struggles -- which led to a 44% year-over-year revenue tumble and a loss of around $400 million for the quarter ending on Aug. 1 -- will simply become Brookfield's and Simon's problems. The two mall owners have demonstrated a little retailing acumen with their co-ownership of Forever 21 and Aeropostale. J.C. Penney, however, could prove to be their toughest challenge yet.
Source Fool.com
