Sycamore Partners Management, L.P.is in preliminary talks to acquire J. C. Penney Company, Inc. (OTCPK:JCPN.Q) out of bankruptcy should the US department store chain's negotiations with its creditors fail, three people familiar with the matter said on June 05, 2020. Shares of JCPenney jumped almost 55% on the news. Sycamore is weighing acquiring JCPenney outright or making an investment in the troubled retailer, the sources said.
There is no certainty that the talks between Sycamore and JCPenney will result in a deal, which would require a bankruptcy judge's approval, the sources said. JCPenney is also in touch with some of its landlords, including Brookfield Asset Management Inc. (TSX:BAM.A) and Simon Property Group, Inc. (NYSE:SPG), about possible transactions, the sources said. Under one scenario being explored, Sycamore, Brookfield and Simon would join forces on a bid for JCPenney, two of the sources said. The sources requested anonymity because the discussions are confidential. Sycamore and JCPenney declined to comment. Brookfield had no immediate comment while Simon did not immediately respond to a request for comment.