Please ensure Javascript is enabled for purposes of website accessibility

Sale Negotiations Between J.C. Penney, Landlords Break Down

By Eric Volkman – Aug 31, 2020 at 10:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A lawyer for the troubled retailer revealed the collapse of negotiations in a court proceeding on Monday.

The future of J.C. Penney (JCPN.Q) is in more serious doubt than ever following the collapse of talks between the troubled retailer and two of its landlords regarding a sale. The impasse was revealed by Joshua Sussberg, a lawyer representing J.C. Penney, in a bankruptcy court hearing on Monday.

According to Sussberg, discussions between the retailer and two landlords, real estate investment trust (REIT) Simon Property Group (SPG -0.10%) and real estate investment company Brookfield Property Partners (BPY), occurred this past weekend.

Interior of a J.C. Penney store.

Image source: J.C. Penney.

The company, Simon, and Brookfield Property are in negotiations over J.C. Penney's retail assets, chiefly a clutch of its stores. Combined, Simon and Brookfield Property are the landlords for over 100 JCPenney stores. Prior to declaring bankruptcy in May, the storied retailer had 846 outlets.

If a deal were reached, it would likely pull the retailer out of bankruptcy. Yet talks have stalled over the terms of future leases, among other issues. Sussberg didn't delve into details during the court hearing, but noted that J.C. Penney could still make a deal with creditors if discussions with Simon and Brookfield Property fail. The creditors and the retailer agreed to a tight deadline of Sept. 10, 2020, for this to occur.

Neither Simon nor Brookfield Property has yet commented on Monday's court proceeding. J.C. Penney also has not issued an official reaction to the news.

J.C. Penney, a classic old-line department store operator with a large brick-and-mortar footprint, was already struggling with the retail apocalypse when the novel coronavirus pandemic hit early this year.


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Simon Property Group Stock Quote
Simon Property Group
$95.77 (-0.10%) $0.10
J.C. Penney Stock Quote
J.C. Penney
Brookfield Property Partners Stock Quote
Brookfield Property Partners

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.