JC Penney has emerged from bankruptcy with the completion of its sale to Simon Property Group and Brookfield Asset Management.
Fox Business reports that "as part of the deal, the property holding companies will own 160 of JCPenney's real estate assets and all of its owned distribution centers as part of a separate property holding company … The company plans to permanently close nearly a third of its 846 stores as part of its restructuring over the next two years, which would leave it with just over 600 locations."
This is all about a couple of mall owners throwing a Hail Mary pass, hoping that they can keep a company that has been a major tenant breathing, it will slow the slow death that has been experienced by many of their properties.
- KC's View:
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Anyone who thinks that JC Penney is capable of reversing a death march ought to double down and put their faith in Sears. And maybe Montgomery Ward. And, if there is any money left over, they could revive EJ Korvette.
Though, to be honest, if there were a mall that opened tomorrow with those four anchor tenants, I'd want to visit it. I wouldn't worry about contracting coronavirus, because I'd be the only one there.
