JC Penney Files For Chapter 11 Bankruptcy Protection
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
This is an expensive gamble and I doubt that it will stop JCP from closing what's left of their small market and other small format stores. Simon and Brookfield are in first and second tier markets with A and B-grade malls (Simon has the Bs mostly via the Glimcher spinoff which I think they still manage). Buying Penney's may be seen as stablizing a lot of B-grade malls where it's the last or second to the last anchor. A lot of Brookfield's As don't have JCP and some like Perimeter in Atlanta have lost Penney's because they didn't fit their niche, so I suspect it's more about the Bs for them. In the end, the landlords have to find people who can come up with a long haul merchandising strategy, which won't be easy.
Macy's can't be both a mess and a prize. They are struggling and lack a clear direction. Their best hope would be for Belk for be screwed up by private equity---pretty likely and for Kohl's to flail and for the specialty store competition to keep dying. If Brookfield and Simon can't turn around JCP they won't have the capital for something else.
Macy's can't be both a mess and a prize. They are struggling and lack a clear direction. Their best hope would be for Belk for be screwed up by private equity---pretty likely and for Kohl's to flail and for the specialty store competition to keep dying. If Brookfield and Simon can't turn around JCP they won't have the capital for something else.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
I guess we will see what happens. This may be a real estate play more than anything else. JCP's days will probably still be numbered but it will be a slower process now vs. closing them all up at once. I agree Macy's has its issues, but its strengths are numerous compared to JCP.buckguy wrote: ↑September 10th, 2020, 4:45 am This is an expensive gamble and I doubt that it will stop JCP from closing what's left of their small market and other small format stores. Simon and Brookfield are in first and second tier markets with A and B-grade malls (Simon has the Bs mostly via the Glimcher spinoff which I think they still manage). Buying Penney's may be seen as stablizing a lot of B-grade malls where it's the last or second to the last anchor. A lot of Brookfield's As don't have JCP and some like Perimeter in Atlanta have lost Penney's because they didn't fit their niche, so I suspect it's more about the Bs for them. In the end, the landlords have to find people who can come up with a long haul merchandising strategy, which won't be easy.
Macy's can't be both a mess and a prize. They are struggling and lack a clear direction. Their best hope would be for Belk for be screwed up by private equity---pretty likely and for Kohl's to flail and for the specialty store competition to keep dying. If Brookfield and Simon can't turn around JCP they won't have the capital for something else.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
JCPenney has been running commercials on TV quite a bit during network shows the past week or so. At least they are trying to resemble a store interested in staying open, unlike Sears...
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
It *is* a real estate play, but not Eddie Lampert style. This is the mall owners with a genuine interest in keeping the stores from going dark. Nothing hampers a mall more than a dark anchor. It's seen as a sign of instability. I believe the entire mall industry has been thrown a monkey wrench by the undoing of Sears by Lampert; they couldn't afford to lose JCPenney too.storewanderer wrote: ↑September 10th, 2020, 11:10 pm I guess we will see what happens. This may be a real estate play more than anything else. JCP's days will probably still be numbered but it will be a slower process now vs. closing them all up at once. I agree Macy's has its issues, but its strengths are numerous compared to JCP.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
Meanwhile I went to the Reno Mall tonight. The JCP Store was locked up tight and dark as could be at 7:15 PM. I guess they close at 7 PM. The mall closes at 8 PM and Macy's closes at 9 PM.
This is right out of Sears playbook- closing the store earlier than the mall closes. Maybe do this on a Tuesday night but to do this on a Friday night when you are right next to a busy restaurant that has a wait list going? The Forever 21 and Aeropostle in the mall were both still open... following the mall's 8 PM closing time.
Right next to JCP Store is a Cheesecake Factory restaurant which for some mysterious reason is very popular. There were 30+people waiting outside for tables and some waiting inside the mall outside its entry too. The wait is partially due to the capacity limit thing in the restaurant but there were a lot of people there any way you cut it.
This is right out of Sears playbook- closing the store earlier than the mall closes. Maybe do this on a Tuesday night but to do this on a Friday night when you are right next to a busy restaurant that has a wait list going? The Forever 21 and Aeropostle in the mall were both still open... following the mall's 8 PM closing time.
Right next to JCP Store is a Cheesecake Factory restaurant which for some mysterious reason is very popular. There were 30+people waiting outside for tables and some waiting inside the mall outside its entry too. The wait is partially due to the capacity limit thing in the restaurant but there were a lot of people there any way you cut it.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
Take the mall here, they lost Kmart in 2017, Sears in 2019 and now JCPenney is closing. The only anchor they've managed to get in during all this is a gym, and that was put in place of an existing in-line space that was created by moving those small stores elsewhere. You know they're never going to refill any of those 3 large anchor spaces. At least they still will have Bealls and Belk which seem a bit stronger, but still 3/5 anchors dark is pretty dismal. Even the in-line anchors have gotten flighty due to the high rent rates.wnetmacman wrote: ↑October 2nd, 2020, 11:42 amIt *is* a real estate play, but not Eddie Lampert style. This is the mall owners with a genuine interest in keeping the stores from going dark. Nothing hampers a mall more than a dark anchor. It's seen as a sign of instability. I believe the entire mall industry has been thrown a monkey wrench by the undoing of Sears by Lampert; they couldn't afford to lose JCPenney too.storewanderer wrote: ↑September 10th, 2020, 11:10 pm I guess we will see what happens. This may be a real estate play more than anything else. JCP's days will probably still be numbered but it will be a slower process now vs. closing them all up at once. I agree Macy's has its issues, but its strengths are numerous compared to JCP.
The power center in my area, which overall has really good traffic is starting to feel it too. They lost Gold's Gym last year and just now I've noticed Books a Million is closing. That's two huge spaces dark... and I have a feeling it may not be long before the Bed Bath and Beyond chain goes out completely. Again, you KNOW they will never refill those spaces. Especially a Gold's Gym with a pool, racketball courts, and all the other facilities... what a waste.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
I have seen a number of Macy's locations closing earlier than the rest of the mall, which has been going on for a few years. I have also seen instances, at least with Sears in the past, where the store is open but the inside mall entrance is closed, apparently to prevent shoplifting. There is no real consistency with this. Sears has so few stores left it's hard to tell what the norm is for them now, but with Macy's I have noticed they tend to keep mall hours at Grade A malls, while often closing earlier at less busy malls.storewanderer wrote: ↑October 2nd, 2020, 10:44 pm Meanwhile I went to the Reno Mall tonight. The JCP Store was locked up tight and dark as could be at 7:15 PM. I guess they close at 7 PM. The mall closes at 8 PM and Macy's closes at 9 PM.
This is right out of Sears playbook- closing the store earlier than the mall closes. Maybe do this on a Tuesday night but to do this on a Friday night when you are right next to a busy restaurant that has a wait list going? The Forever 21 and Aeropostle in the mall were both still open... following the mall's 8 PM closing time.
Right next to JCP Store is a Cheesecake Factory restaurant which for some mysterious reason is very popular. There were 30+people waiting outside for tables and some waiting inside the mall outside its entry too. The wait is partially due to the capacity limit thing in the restaurant but there were a lot of people there any way you cut it.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
This makes sense. I have not seen JCP hold shorter hours than the mall previously. I wonder if they are really so strapped for cash that they cannot even afford an extra hour of store labor?Super S wrote: ↑October 3rd, 2020, 8:14 am
I have seen a number of Macy's locations closing earlier than the rest of the mall, which has been going on for a few years. I have also seen instances, at least with Sears in the past, where the store is open but the inside mall entrance is closed, apparently to prevent shoplifting. There is no real consistency with this. Sears has so few stores left it's hard to tell what the norm is for them now, but with Macy's I have noticed they tend to keep mall hours at Grade A malls, while often closing earlier at less busy malls.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
Debt holders are preparing an alternate bid.
https://www.bloomberg.com/news/articles ... -rival-bid
I wonder what they would plan to do with the chain.
https://www.bloomberg.com/news/articles ... -rival-bid
I wonder what they would plan to do with the chain.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection
This bankruptcy case seems to be having ongoing problems and delays. Now they are closing 144 more stores. All efforts are being made to save about 600 stores and 70,000 jobs (most of which are part time without company paid benefits of any kind) but it is beginning to look odd why there are so many delays with this bankruptcy case.
This chain will never survive long term anyway.
This chain will never survive long term anyway.