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J.C. Penney taps Cushman, B. Riley to sell 163 locations

Department store chain, which filed for bankruptcy in May, previously said it would be closing 242 stores

B. Riley Real Estate president Michael Jerbich and  J.C. Penney CEO Jill Soltau (Getty, Linkedin, J.C. Penney)
B. Riley Real Estate president Michael Jerbich and  J.C. Penney CEO Jill Soltau (Getty, Linkedin, J.C. Penney)

As part of its plan to reduce its portfolio and cut costs amid Chapter 11 bankruptcy, J.C. Penney is looking to sell off its interest in 163 locations across the country.

The department store chain has tapped Cushman & Wakefield and B. Riley Real Estate to sell the leases for 142 locations, as well as 21 stores it owns, Business Insider reported.

“There’s all kinds of interest and there are some good properties here,” B. Riley principal Jim Terrell told the publication.

“There are residential investors who might redevelop these properties and there’s storage players who could use them for logistics. And then you have retailers themselves who could occupy it.”

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J.C. Penney declined to comment. Bankruptcy filings from May indicated that the company planned to close 192 stores this year and sell 50 stores that it owns next year.

Bids for the leases are due by mid-September, while the owned stores may take longer to sell, according to B. Riley president Michael Jerbich.

“Although there aren’t additional stores being offered for sale at this time, that could change as the process evolves,” Jerbich said.

Several buyers are reportedly considering bidding for the J.C. Penney brand, including mall owners Simon Property Group and Brookfield, private equity firm Sycamore, and Amazon. [BI] — Kevin Sun

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