×
223
Fashion Jobs
LEVI'S
Key Account Manager
Permanent · London
TOMASZ DONOCIK
Digital Marketing And Sales Coordinator
Permanent · LONDON
PYOU
Wholesale Business Developer/Sales Manager
Permanent · LONDON
SHISEIDO
Demand Planner
Permanent · London
SHISEIDO
Commercial Finance Analyst
Permanent · London
SHISEIDO
Bareminerals Account Manager - bt2, Blanchardstown
Permanent · Chappaqua
SHISEIDO
Bareminerals Account Manager - Moores, Colearine
Permanent · Coleraine
SHISEIDO
Group Business Analyst
Permanent · London
SHISEIDO
Accounts Payable Manager
Permanent · LONDON
LEVI'S
Sales Stylist London o2 Arena 16 Hours
Permanent · London
HUGO BOSS
Assistant Store Manager - New Cathedral Street, Manchester
Permanent · Manchester
HUGO BOSS
Sales Associate - New Cathedral Street, Manchester
Permanent · Manchester
HUGO BOSS
Sales Associate - Southampton
Permanent · Southampton
HUGO BOSS
Sales Associate - Bristol Cribbs Causeway
Permanent · Bristol
HUGO BOSS
Brand Specialist - Birmingham Bullring
Permanent · Birmingham
HUGO BOSS
Assistant Store Manager - Bicester
Permanent · Oxford
HUGO BOSS
Assistant Store Manager - Bristol Cribbs Causeway
Permanent · Bristol
HUGO BOSS
Supervisor - Milton Keynes
Permanent · Milton Keynes
HUGO BOSS
Brand Specialist - New Cathedral Street, Manchester
Permanent · Manchester
CLERGERIE
Assistant Store Manager (Walton Street)
Permanent · LONDON
MAJE
Sales Assistant, Full Time - Selfridges, London
Permanent · LONDRES
BRUNELLO CUCINELLI
Senior Client Advisor - Chinese/Arabic Speaker
Permanent · LONDON
By
Reuters API
Published
Sep 1, 2020
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

J.C. Penney sale talks stall, pushing retailer to brink

By
Reuters API
Published
Sep 1, 2020

J.C. Penney's talks with landlords for a rescue from bankruptcy proceedings has reached an impasse, pushing the department store to the brink of collapse unless it can reach a deal within days to be taken over by lenders.


Facebook: J.C. Penney



Discussions between the Plano, Texas-based retailer and a duo of mall owners Simon Property Group Inc and Brookfield Property Partners LP stalled over the weekend, Joshua Sussberg, a J.C. Penney lawyer at Kirkland & Ellis LLP, said during a Monday court hearing.

The negotiations have dragged on in part over lease terms, according to people familiar with the matter. Sussberg did not detail that or any other specific sticking points during Monday’s hearing.
Sussberg said lenders were still prepared to rescue the 118-year-old company and more than 70,000 jobs depending on negotiations over the next 10 days.

A lawyer for the lenders, Andrew Leblanc of Milbank LLP, said there were “lots of hurdles” to reaching such a deal, describing negotiating an agreement on a short timeframe as a “heavy lift.” The two sides set a Sept. 10 deadline.

Simon did not immediately respond to a request for comment while Brookfield declined to comment.

J.C. Penney, which filed for bankruptcy in May after the coronavirus pandemic forced it to temporarily close the nearly 850 stores it operated at the time, is racing to reach a deal that would carve it into three parts.

One would be an operating company housing its retail business, including intellectual property and hundreds of stores. Lenders would forgive portions of J.C. Penney’s $5 billion debt load to take control of two real estate investment trusts. One would hold 160 properties, with the other controlling the company’s distribution centers, Sussberg said.

J.C. Penney had hoped to reach a deal with Simon and Brookfield to take over the company’s retail operations. Sussberg said negotiations with the duo were in the “red zone” earlier this month before hitting roadblocks, including an offer from the company submitted to the landlords over the weekend that received no response.

The development will force J.C. Penney to close additional stores that at one point might have been saved, Sussberg said.

U.S. Bankruptcy Judge David Jones had previously urged parties to set aside what he labeled egos and negotiating postures to get a deal done.

“I hope everyone realizes how serious I am about this. I know where this is headed,” Jones said during Monday’s hearing. He told a shareholder that declining to allow J.C. Penney to continue talks with lenders would result in all the company’s stores closing and “the death of an entity.”

J.C. Penney’s lenders, which include hedge funds and private-equity firms financing its bankruptcy case, have now agreed to explore forgiving debt to also take control of the company’s retail operations in addition to the two real estate investment trusts they envisioned owning.

"Our lenders are no longer going to be held hostage," Sussberg said. "Time is not our friend."

Buyout firm Sycamore Partners and Saks Fifth Avenue owner Hudson’s Bay Co have also held discussions with J.C. Penney to take control of its retail business without reaching a deal, people familiar with the matter have said.

J.C. Penney continued talks with those suitors over the weekend, Sussberg said, though they did not reach any agreement. Sycamore and Hudson's Bay both declined to comment.

© Thomson Reuters 2021 All rights reserved.