Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

J.C. Penney Has Acquisition Offers From Three Different Buyers

By Rhian Hunt - Jul 31, 2020 at 8:50AM

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

The company's lawyer reports all three bidders want to keep it as a stand-alone company.

Recent rumors about bankrupt department store company J.C. Penney ( JCPN.Q ) merging and disappearing if it is bought out by private equity firm Sycamore Partners were countered today by Joshua Sussberg, a lawyer for the retailer.

Speaking in court, Sussberg rejected the idea that any of the potential purchasers planned to combine J.C. Penney with another company and thus extinguish its brand name. All of the bidders, left unnamed for confidentiality reasons, mean to run the retailer as a stand-alone department store after buying it and getting it out of bankruptcy, he said.

A Penney's storefront.

Image source: JC Penney

Sussberg also said that liquidation of J.C. Penney "is simply not in the cards" and that those running the company "have had not one discussion with our lenders or any other stakeholders about a liquidation." He dismissed specifics about bidders and bid amounts published in The New York Post and elsewhere earlier this week as "ill-informed," with the names of the possible purchasers and their offers undisclosed as of Thursday evening.

While Sussberg's comments mostly expressed confidence that J.C. Penney will emerge successfully from bankruptcy in late 2020, he said selling the retailer to a new owner "needs to move faster" to achieve the desired results. Penney's cash reserves currently stand at $1.2 billion but are more than counterbalanced by the company's long-term debt total of $3.8 billion.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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

J. C. Penney Company, Inc. Stock Quote
J. C. Penney Company, Inc.

*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 service.

Premium Investing Services

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