There’s a new chapter in the bankruptcy proceedings story for struggling department store chain J.C. Penney.
CNBC reported on Monday that talks to find a buyer have stalled and the clock is ticking on keeping the retailer open.
According to the report, on-going discussions with three possible bidders that included Simon Property Group, Brookfield and Hudson’s Bay hit a wall. The reasons for the snag in negotiations are unknown.
Joshua Sussberg, an attorney with the firm Kirkland & Ellis, said that some of J.C. Penney’s top lenders are set to make a bid to own the retailer as a stand-alone company. A deadline of September 10 has been set to reach an agreement.
At stake is the future of the venerable retailer that was founded in 1902 in Kemmerer, Wyoming, by James Cash Penney and the jobs of the company’s 70,000 employees.
Headquartered in Plano, Texas, J.C. Penney’s filing for Chapter 11 bankruptcy project on May 15 came as little surprise to retail industry experts as the company has struggled financially for several years. The COVID-19 pandemic was the last straw for Penney and pushed the company into bankruptcy.