Bankrupt JCPenney, Sycamore Partners in acquisition talks: Report
J.C. Penney filed for Chapter 11 bankruptcy May 15 because of coronavirus
J.C. Penney could be acquired out of bankruptcy, according to one report.
On Friday, Reuters broke the news that Sycamore Partners, a New York-based private equity firm, is in preliminary talks to take over J.C. Penney.
The acquisition could take place if the bankrupt retailer isn’t able to negotiate with its creditors, according to Reuters, which cited three anonymous sources “familiar with the matter.”
Sycamore could also make an investment in J.C. Penney, the report said.
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However, it’s not a done deal. Reuters reported that the talks may not lead to anything, and even if they did, a bankruptcy judge would have to approve an acquisition.
J.C. Penney and Sycamore did not immediately return FOX Business’ requests for comment.
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On May 15, J.C. Penney filed for Chapter 11 bankruptcy protection after stores were forced to close their doors during the coronavirus pandemic.
Though the company had been trying to revive its business, the pandemic “created unprecedented challenges,” CEO Jill Soltau said in a statement at the time.
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On Thursday, the company announced some of its first steps for reorganizing the business, including shutting down 154 stores in 38 states.
“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” Soltau said in a company statement Thursday.
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