A group of lenders steering J.C. Penney Co.’s bankruptcy process is asking potential buyers of the retail chain to increase their bids after a round of offers in July were seen as too low, Bloomberg News reported. The lenders are pushing for offers closer to the approximately $2.2 billion of J.C. Penney’s debt they hold. Earlier proposals from mall owners and retail firms added up to payments of about $1.8 billion. If those don’t improve, the lenders could acquire the company through a credit bid, in which they forgive the debt in return for ownership. A bid from mall owners Simon Property Group Inc. and Brookfield Property Partners LP is viewed more favorably in part because it’s likely to preserve the most jobs. The two landlords have an incentive to keep J.C. Penney alive because it’s one of their largest tenants. J.C. Penney employed almost 85,000 people when it went bankrupt in May. Private equity firm Sycamore Partners and Saks Fifth Avenue owner Hudson’s Bay Co. were also among the first round of bidders. Both firms own retail chains they could potentially combine with J.C. Penney or some of its brands.
