J.C. Penney is reportedly close to accepting a $1.75 billion bid from Sycamore Partners to acquire the company in an auction in bankruptcy court. Sycamore intends to merge Penney with Belks, which operates 300 department stores mostly in the South.
While the deal is still subject to approval from the court, as well as from J.C. Penney’s lenders, creditors and board, Sycamore has been in the lead since bids were due on July 22, according to the New York Post.
Also in the running for J.C. Penney is Saks Fifth Avenue owner Hudson’s Bay.
Sycamore’s plan involves rebranding some 250 J.C. Penney stores to Belks stores in markets where the two retailers don’t overlap, according to the Post. The rest of the J.C. Penney locations would be liquidated.
Penney operated 850 stores when it filed for bankruptcy protection on May 15. Last week it announced plans to close 152 stores, with plans to shutter 250 of its remaining 846 stores by the end of summer 2021.
Photo courtesy J.C. Penney/AP
