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After emerging from Chapter 11 bankruptcy in November, retail giant JCPenney, 118, is planning a new start for 2021, starting with the search for a new leader.
JCPENNEY CLOSES MORE STORES IN 2021 AS NEW OWNERS REMODEL RETAILER
The retailer’s new owners, Brookfield Partners and Simon Property Group, have announced that they are looking for someone “focused on modern retail, consumer experience and the goal of creating a sustainable and long-lasting JCPenney”. The research will be carried out in partnership with Authentic Brands Group.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| BPY | BROOKFIELD PROPERTY PARTNERS | 14.64 | +0.02 | + 0.14% |
| SPG | SIMON PROPERTY GROUP INC. | 83.97 | +0.68 | + 0.82% |
The current CEO of JC Penney, Jill Soltau, is expected to leave the company on Thursday. Soltau was brought to the leadership team at JC Penney in October 2018, after stints as president and CEO of JOANN Stores, a textile and craft retailer, and president of Shopko Stores, according to the company. Soltau’s appointment caused the company’s stock to skyrocket at the time, in the hope that it would help turn the company around.
Meanwhile, Simon Property Group’s chief investment officer, Stanley Shashoua, will take over as interim CEO from January 1, 2021.
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JC Penney filed for bankruptcy in May, when the coronavirus pandemic devastated the retail sector. The company’s financial difficulties led to the closing of 154 stores in 38 states in June and another 152 store closings and 1,000 job cuts in July.
In September, JC Penney said it had reached a principle redemption agreement with its owners, Simon and Brookfield, valued at $ 800 million in cash and new-term loan debt. The deal was approved by the US Bankruptcy Court for the Southern District of Texas in November.
As part of the deal, Simon and Brookfield would own 160 of JCPenney’s real estate assets and all of its own distribution centers as part of a separate real estate holding company. Bankruptcy attorney Joshua Sussberg of Kirkland & Ellis said at a hearing in September that the bailout deal would save about 70,000 jobs.
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In addition to the CEO search, the department store chain plans to close additional stores in March.
“As part of our store optimization strategy that started in June with our financial restructuring, we made the decision to close another 15 stores,” said JCPenney in a statement to USA Today. “These stores will start selling at the end of this month and will close to the public in mid-March until the end.”
Overall, the company’s two-year restructuring will permanently close almost a third of its 846 stores, leaving it with just over 600 locations.