Private equity firm Sycamore Partners is in preliminary talks to acquire J.C. Penney Co Inc. out of bankruptcy should the U.S. department store chain’s negotiations with its creditors fail, Reuters reported. J.C. Penney, which employs roughly 85,000 people, filed for bankruptcy protection in May after the coronavirus pandemic forced it to temporarily close its more than 800 stores across the United States, compounding financial woes that stemmed from years of dwindling sales. Sycamore is weighing acquiring J.C. Penney outright or making an investment in the troubled retailer. There is no certainty that the talks between Sycamore and J.C. Penney will result in a deal, which would require a bankruptcy judge’s approval. J.C. Penney is also in touch with some of its landlords, including Brookfield Asset Management Inc. and Simon Property Group, about possible transactions. Under one scenario being explored, Sycamore, Brookfield and Simon would join forces on a bid for J.C. Penney, two of the sources said. Wells Fargo & Co. is also involved in the discussions.
