The New York-based firm has made an offer of $1.75 billion to the veteran retailer, according to the Post. It has also proposed a merger of JCPenney with Belks, another seasoned retailer it had purchased in 2015, as part of the acquisition deal.
“[JCPenney] is the lifeboat for Belks, which wants to compete with Macy’s Inc. (NYSE:M) nationally,” a person familiar with the matter told the Post.
Other competing bidders include Canadian Hudson’s Bay Company with a $1.7 billion offer, and mall owners Simon Property Group Inc. (NYSE:SPG) Brookfield Property Partners LP (NASDAQ:BPY), who have made a joint offer of $1.65 billion.
One of the Post sources said all bidders were informed that Sycamore and Belks “submitted the strongest bid to acquire JCP,” while another added that all bidders remain in the mix.
Why It Matters
JCPenney had filed for a Chapter 11 bankruptcy in May, as the novel coronavirus (COVID-19) pandemic dealt a major blow to an already struggling retailer.
Reuters reported in early June that Sycamore was holding preliminary talks with the departmental store chain to acquire it out of bankruptcy.
Sycamore’s interest in JCPenney comes after it earlier backed out of a deal to buy a 55% stake in L Brands (NYSE:LB) subsidiary Victoria’s Secret, claiming the lingerie company’s response to the COVID-19 pandemic breached their contract.
JCPenney shares closed 2.4% lower at $0.26 on Monday.
Photo courtesy: JCPenney