Two of J.C. Penney Co.’s largest landlords have emerged as the leading contenders to acquire the department-store chain’s retail business out of bankruptcy, the Wall Street Journal reported. Simon Property Group Inc., the biggest mall owner in the U.S. by number of malls, and Brookfield Property Partners LP, another big shopping center owner, have joined together and are in advanced talks to purchase Penney’s retail operations, people familiar with the matter said. In recent days, the pair have eclipsed other interested bidders. Penney reviewed a competing offer from private-equity firm Sycamore Partners that carried a slightly higher price tag. But Simon and Brookfield offered certain concessions over lease agreements that Penney and its lenders viewed as delivering better value. Penney is one of Simon’s top anchor tenants, second only to Macy’s Inc. If a deal comes together, it would save Penney from a possible liquidation and mark another acquisition by Simon of a bankrupt tenant. The company was part of a group that bought Forever 21 Inc. out of chapter 11 in February and Aéropostale Inc. in 2016. Simon also has agreed to buy Brooks Brothers out of bankruptcy for $325 million in a joint bid with apparel-licensing firm Authentic Brands Group LLC.
