J.C. Penney Co. expects to sell itself in coming months to a bidder that will keep the company’s stores operating under the current name, Penney’s lead bankruptcy lawyer said and WSJ Pro reported. Joshua Sussberg of Kirkland & Ellis LLP said that a liquidation was “simply not in the cards” after the company received strong bids from potential buyers that want to keep it in business. One of the proposals came from top lenders including H/2 Capital Partners LLC, Sixth Street Partners and Sculptor Capital Management, which have offered debt forgiveness as currency to buy the company’s real estate holdings out of bankruptcy. Three other bidders made offers for the company’s retail operations. J.C. Penney has said that it would spin off its real estate into an investment trust under the bankruptcy process. The company expects to select a lead bidder and file a proposed asset-purchase agreement with the bankruptcy court early next month, he said. Other bidders will have the opportunity to top the lead offer. The sale requires court approval to close. Sussberg also rejected speculation that Penney would be folded into another retail platform, saying that after the sale, the stores would keep operating under the Penney banner.
