As Penney’s Stores Close, An Unexpected Pairing Might Save It
After a Chapter 11 bankruptcy filing to stabilize its finances, word is leaking out about some of the stores long-time retailer J. C. Penney's is planning to close. The initial list indicates plans to close three stores in Michigan, all of which are in the northern part of the state. One report says they are located in Cadillac, Petosky and Alpena.
But a small blurb in a USA Today story indicates a strange pairing might be the in the works. The story points to a Women's Wear Daily report that says Amazon might be in talks to buy J.C. Penney. Apparently Amazon want to expand is clothing and apparel business and, obviously, Penney's needs a buyer with a big bank account to save it, so this could be a business marriage made in heaven.
It important to remember that not so long ago, Penney's was a thriving retailer, and it was bad management choices and mistakes that put them into their current financial crisis. (An even more apt example of bad management is Penney's neighbor in many malls, Sears, which is also on life support.)
Penney's is not alone, struggling right now. Many retailers reeling from the two pronged effect of both Covid-19 and the effects of the retail business increasingly shifting to online sales.
According to early reports about the bankruptcy filing, Penney's has asked it's landlords not to charge rent for June, July and August, and USA Today says the judge assigned to the case is pleased to see the efforts the company is making to both stay in business and keep people employed.