The retailer is progressing slowly in its proposed deal to sell its department store to Simon Property Group and Brookfield Property Partners.
J.C. Penney entered Chapter 11 bankruptcy due to a decline in sales and subsequent profit losses, since then Simon Property Group and Brookfield Property Partners have expressed interested in acquiring the retailer through a potential joint venture. As the deal continues to slowly progress, the company is now going through with their previously announced plans to close 144 stores as they wait for a deal to be signed and closed.
Although last month it appeared that the two property companies had reached a final deal, some details still need confirming before the deal is completed. The two shopping centre companies had intended to receive the majority of the retail real estate with other investors, H/2 and KKR would get additional real estate. However this deal has now been described as unfair and negotiations will continue until Wednesday, with J.C. Penney hoping that a deal is reached.
