Private equity firm Sycamore Partners is leading a bidding war to acquire the bankrupt JC Penney Company, Inc. (OTC: JCPNQ), the New York Post reported Monday.
What happened
The New York-based firm has made an offer of $ 1.75 billion to the veteran retailer, according to the Post. It has also proposed a merger of JCPenney with Belks, another experienced retailer that it had purchased in 2015, as part of the acquisition agreement.
One of the Post’s sources said that all bidders were informed that Sycamore and Belks “submitted the strongest bid to acquire JCP,” while another added that all bidders remain in the mix.
Because it is important
JCPenney had filed for Chapter 11 bankruptcy in May, as the new coronavirus pandemic (COVID-19) dealt a blow to a retailer that was already struggling.
Reuters reported in early June that Sycamore was holding preliminary talks with the department store chain to acquire it bankrupt.
Price action
JCPenney shares closed 2.4% lower at $ 0.26 on Monday.
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