J.C. Penney Landlords Nearing Bankruptcy Deal
August 12 2020 - 7:01PM
Dow Jones News
By Alexander Gladstone and Andrew Scurria
Two of J.C. Penney Co.'s largest landlords have emerged as the
leading contenders to acquire the department-store chain's retail
business out of bankruptcy, according to people familiar with the
matter.
Simon Property Group Inc., the biggest mall owner in the U.S. by
number of malls, and Brookfield Property Partners LP, another big
shopping center owner, have joined together and are in advanced
talks to purchase Penney's retail operations, people familiar with
the matter said. In recent days, the pair have eclipsed other
interested bidders, according to the people.
Penney reviewed a competing offer from private-equity firm
Sycamore Partners that carried a slightly higher price tag, some of
the people said. But Simon and Brookfield offered certain
concessions over lease agreements that Penney and its lenders
viewed as delivering better value, the same people said.
Simon didn't respond to requests for comment. Representatives
for Penney, Brookfield and Sycamore declined to comment.
The negotiations are fluid, the people said, and aren't certain
to produce an agreement acceptable to Penney and its top lenders.
Other bidders would have the opportunity to top the lead offer,
which also requires approval from the judge presiding over Penney's
chapter 11 case in the U.S. Bankruptcy Court in Corpus Christi,
Texas.
(MORE TO COME)
Esther Fung contributed to this article.
Write to Alexander Gladstone at alexander.gladstone@wsj.com and
Andrew Scurria at andrew.scurria@wsj.com
(END) Dow Jones Newswires
August 12, 2020 18:46 ET (22:46 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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