The J.C. Penney Sale Is Complete -- Now the Hard Work Begins
J.C. Penney (OTC: JCPN.Q) enters a new phase after a judge approved the retailer's sale to two of its major landlords, Simon Property Group (NYSE: SPG) and Brookfield Asset Management (NYSE: BAM).
Although the department store chain struggled for years before the global pandemic, the COVID-19 outbreak was the coup de grace, forcing J.C. Penney to seek Chapter 11 protection in May. The mall operators, though, risked having yawning canyons of empty anchor stores in their properties if J.C. Penney was liquidated, so they bought the retailer to keep it going.
The chain emerges with 690 stores and about $1.5 billion in new financing available to it. Now, it and the new owners face a daunting challenge: convincing consumers who once abandoned the retailer it's worth coming back. That may be a tall order.
Source Fool.com
