J.C. Penney liquidation 'not in the cards,' as retailer moves toward a sale this fall

[Omaha Steve]

Source: CNBC

By Lauren Thomas

For bankrupted J.C. Penney, a liquidation is “not in the cards,” according to the department store chain’s attorney.

Penney is moving forward with a sale that should be completed by this fall, attorney Joshua Sussberg of Kirkland & Ellis said during a court hearing Wednesday afternoon.

“I want to say, unequivocally, we have had not one discussion about a liquidation,” Sussberg said about Penney’s restructuring process. “It’s simply not in the cards.”

Sussberg called attention to a report earlier in the week from the New York Post that said the private-equity firm Sycamore was planning to make a $1.75 billion bid to buy the 118-year-old department store chain and merge it with rival Belk.



A J.C. Penney store in Laguna Hills, California
Scott Mlyn | CNBC

Read more: https://www.cnbc.com/2020/07/29/jc-penney-liquidation-not-in-the-cards-retailer-moves-toward-a-sale.html

[bucolic_frolic]

1. Private equity should be able to take JCP public then bankrupt another 2 or 3 times

[wishstar]

2. By merging with Belk wonder if Penney will retain its own name and separate stores

Guess we'll find out. Dollar Tree and Family Dollar are merged but operating separate stores often in close proximity.

Hope this Penney/Belk merger helps to maintain an in-person retail option. In my mall, Belk and Penney's both remain open as anchor stores but last holiday season Belk was well-stocked and decorated and vibrant with good displays and service (I told staff there that it still looked the way department stores are supposed to look for holidays compared to decrepit Sears and Penneys) Our old Sears is shuttered after several dismal years but now Penney's escalator doesn't work and their merchandise and displays have been lackluster.

[bucolic_frolic]

3. Sometimes private equity shrinks costs and waits for favorable offers in better times

I'd bet that's what's going on here. Depends on the PE firm and the situation.

Don't know if the following is true:

https://en.wikipedia.org/wiki/Belk

"In July 2020, it was announced that Sycamore Partners had made a $1.75B offer to acquire department store chain and competitor JCPenney out of bankruptcy, and would rebrand 250 JCPenney stores to the Belk name, to help the chain compete directly with Macy's. The remaining JCPenney stores will be liquidated.[23]"

[TreasonousBastard]

4. That would make sense-- Penney's name has huge value. It's good to know the fund demons are...

actually running Belk as a business, not just as an asset to be pieced out.

[True Blue American]

5. I have been ordering online from Penney's.

Their service has been great. I buy long time brands I am familiar with.