Sycamore Partners Management, L.P. has offered $1.75 billion to J. C. Penney Company, Inc. (OTCPK:JCPN.Q) with plans to merge it with Belk, a source with knowledge of the situation told The Post. “JCP is the lifeboat for Belk, which wants to compete with Macy's nationally,” the source explained. Also in the running for JCPenney is Saks Fifth Avenue owner Hudson's Bay Company, which offered $1.7 billion, and mall operators Simon Property Group, Inc. (NYSE:SPG) and Brookfield Property Partners L.P. (NasdaqGS:BPY), which have teamed up with a $1.650 billion offer, sources said.

While the deal is still subject to approval from the court as well as from JCPenney's lenders, creditors and board, Sycamore has been in the lead since bids were due on July 22, 2020 sources said. “The bidders were told that Belk/Sycamore submitted the strongest bid to acquire JCP” one source said. A second source, however, noted that all of the bidders are still in the running.

“The three bids are being analyzed and because there's not a big difference between them, it means that all three are seeing a similar valuation,” this person said. JCPenney and Sycamore declined to comment.