|Bid||0.0000 x 900|
|Ask||0.0000 x 900|
|Day's Range||0.1670 - 0.2325|
|52 Week Range||0.1112 - 1.2600|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 22, 2020 - May 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.00|
Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss the current state of retail with Forrester Retail Analyst Sucharita Kodali.
Is it bye-bye to Macy's if a COVID-19 second wave happens?
Macy's announced a $630 million loss in its first quarter earnings report. Yahoo Finance’s Brian Sozzi shares the details.
The bankrupt department store chain is hemorrhaging sales, threatening its ability to restructure successfully.
It is gearing up to be a busy Wednesday, and investors will be turning their attention to the ADP June private employment report, the Institute for Supply Management’s (ISM) manufacturing index reading for June and Macy’s quarterly results.
Nick Shields, Senior Analyst at Third Bridge, joins The First trade to discuss the states of malls as some reopen amid continually rising cases of coronavirus.
Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Heidi Chung discuss JCPenney as it inches closer to closing all of its stores.
On Friday, a number of major public corporations across a variety of industries will observe Juneteenth as a company holiday.
With the job market kicking back into gear after the worst of the COVID-19 pandemic, Target looks to attract new workers to meet demand.
Yahoo Finance’s Alexis Christoforous and Brian Sozzi react to the May retail sales number with Columbia Business School Professor Mark Cohen.
According to sources said to have direct information, J.C. Penney (NYSE: JCP) may be currently working out a deal to be bought out by its own landlords, Brookfield Property Partners (NASDAQ: BPY) and Simon Property Group (NYSE: SPG). A third company, privately held Authentic Brands Group, LLC, is apparently in alliance with the retailer's landlords to work out an acquisition deal. J.C. Penney recently declared Chapter 11 bankruptcy after store closures from the COVID-19 pandemic sent its already struggling operations into a tailspin.
(Bloomberg) -- The two largest mall landlords and Authentic Brands Group LLC are in talks to buy bankrupt department-store chain J.C. Penney Co., according to people familiar with the matter.Authentic Brands may team up with Simon Property Group Inc. and Brookfield Property Partners LP to acquire the retailer as part of its court reorganization, said the people, who asked not to be identified because the talks are private. The discussions are still fluid and may ultimately end without a deal.J.C. Penney, which filed for Chapter 11 protection in May, has been racing to firm up a business plan by a July 14 deadline, after which the company risks running out of cash to finance its reorganization and emerge from bankruptcy court. The company’s proposed exit plan involves creating two new publicly traded entities, including a real estate investment trust that would hold some of the retailer’s property.For the landlords, buying J.C. Penney would ensure the survival of one of their most ubiquitous tenants amid a wave of retail distress that has seen thousands of stores close permanently. That’s in addition to the pandemic lockdown that shuttered most retailers for months nationwide.Authentic teamed up with Simon and Brookfield to buy teen clothing chain Forever 21 out of bankruptcy earlier this year. And Authentic and Simon are also in discussions with Brooks Brothers Inc. on a joint bid that would be part of a potential bankruptcy filing by that clothing retailer, Bloomberg News reported last week.Brookfield, the second-largest U.S. mall operator after Simon, in May announced the creation of a $5 billion fund to buy stakes in retailers.Authentic also owns Aeropostale after teaming up with the mall landlords to buy that brand out of bankruptcy in 2016. Its growing portfolio could be a boon to J.C. Penney if licensed product from those retailers were added to the department store’s lineup.Private equity firm Sycamore Partners has also held preliminary talks to buy J.C. Penney, weighing an acquisition outright or making an investment in the retailer, Reuters reported earlier this month.J.C. Penney’s remaining value includes its owned real estate and intellectual property from its private brands, according to David Silverman, a retail analyst at Fitch Ratings.“The different companies that are potentially looking into J.C. Penney have different capabilities and options given the real estate that J.C. Penney has and the suitors’ potential use with it,” Silverman said.(Adds context on company’s reorganization plan in third paragraph and commentary from an analyst in the last paragraph. A prior version of this story corrected timing of Brookfield fund announcement in the sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Recently, shares of companies in severe financial distress — including Chapter 11 bankruptcy — have been very popular for day traders, a sign that has many concerned.
Simon Freakley, AlixPartners CEO, joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss the outlook for retailers as they struggle to find the road to recovery following COVID-19.
Maneuvering continues among various parties as J.C. Penney (NYSE: JCP) attempts to navigate its recent Chapter 11 bankruptcy and emerge on the other side as a viable, operational retailer. In the latest public development, bankruptcy judge David Jones has ordered the company to pay $250,000 to an informal shareholder's group, defusing an attempt by the shareholders to have the bankruptcy reversed entirely. Arguing that bankruptcy is an absolute necessity for the company, J.C. Penney's lawyer Joshua Sussberg says disallowing Chapter 11 protection "would have left the company on a desolate island without a chance for survival."
(Bloomberg) -- J.C. Penney Co. shareholders got a helping hand Tuesday from U.S. Bankruptcy Judge David Jones.Jones will order the retailer to pay as much as $250,000 in professional fees to support an informal group of shareholders who have been challenging the bankruptcy, he said in a hearing Tuesday. In exchange, the group of retail investors agreed to nix its attempt to have the whole case thrown out along with its request for status as an official group, which could’ve resulted in huge legal bills for J.C. Penney.Shareholders typically get no recovery in a Chapter 11 bankruptcy, but the legal fights that result from pugnacious stockholders can slow down a case and hurt recoveries for creditors. Jones said he views the compromise as a way to help educate shareholders on where the case is headed and how bankruptcy works.“I’m looking at this as a very reasonable expenditure to further education and promote discussion,” Jones said. “It’s not a war chest.”The news comes on the heels of a head-scratching surge in the stock prices of J.C. Penney and other bankrupt companies. Some of the retailer’s debt, which ranks well above shares in the repayment line, was valued at just 0.125 cents on the dollar in a credit-default swap auction Tuesday, implying extremely slim odds of any payout to equity investors.Still, J.C. Penney shareholders have been active participants in its bankruptcy proceedings to date. Several have asked questions during hearings, including cross-examining witnesses and pleading with Jones to prevent a wipeout of the stock. In court papers, the informal stockholder group decried recent bonus payments to executives and insisted that bankruptcy could’ve been avoided.“If there is any possible way -- any way -- to give a meaningful recovery to shareholders, we will fight for it,” Joshua Sussberg of Kirkland & Ellis, J.C. Penney’s bankruptcy lawyer, said in the hearing. But he added that not filing for bankruptcy “would have left the company on a desolate island without a chance for survival.”The case is J.C. Penney Company Inc., 20-20182, U.S. Bankruptcy Court for the Southern District of Texas (Corpus Christi)(Adds final CDS auction result in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Simon Property Group and Brookfield Property REIT are reportedly interested in buying the bankrupt department store chain to prevent the disappearance of a key anchor tenant.
(Bloomberg) -- Investors are piling into stocks of bankrupt companies, wagering against a court process that routinely wipes out shareholders.Car renter Hertz Global Holdings Inc., oil driller Whiting Petroleum Corp. and retailer J.C. Penney Co. are among companies that have seen their shares more than double in recent trading sessions despite being in Chapter 11 bankruptcy, a process that allows companies to keep operating while working out a plan to repay creditors.“I have always thought people have a psychological urge to buy stocks at a low price,” said Kirk Ruddy, a former bankruptcy claims trader. Retail investors may be buying big names they recognize without realizing how rare it is for shareholders to get anything back in bankruptcy, he said.“If you look at the markets in general, people don’t know where to put their money. They are like ‘Hey, I’m going to try that $1 stock,”’ said Ruddy, who now works in sales for SC Lowy Financial HK Ltd.On Tuesday, J.C. Penney shareholders will press a federal judge to appoint a court-approved committee to represent them in the bankruptcy case. Getting official status would mean forcing the retailer to pay for lawyers and financial advisers who would work on behalf of shareholders. Judges rarely grant such requests for two reasons: The legal fees can be expensive and under the so-called absolute priority rule, all the debt of a company must be paid before shareholders can collect anything.Some of the rally in bankrupt shares might be attributable to short covering, when traders who have bet against a company close their positions by re-buying shares, lifting prices. But the rally could also be fueled by amateur traders, bored in lockdown and looking for a quick buck, using platforms such as Robinhood. The number of Robinhood users holding both Hertz and Whiting Petroleum shares surged after the companies filed for bankruptcy, according to Robintrack, a website unaffiliated with the stock trading platform that uses data to show trends.“No one ever loses equity in a bankruptcy case,” U.S. Bankruptcy Judge David Jones said during a status conference in the J.C. Penney case last month. “Equity gets lost long before the case is filed.”Under U.S. bankruptcy law, shareholders are last in line for any kind of payout -- behind the lawyers, lenders, and vendors -- making a recovery for shares unusual. The size and scope of payouts is usually determined by a so-called Chapter 11 plan, which creditors vote on and send to a federal judge for approval. Those plans often leave even high-ranking creditors getting less than they’re owed.The price hikes among the bankrupt include:Hertz, which climbed 95% since it filed bankruptcy on May 22J.C. Penney, up 167% since May 15Whiting Petroleum, up 835% since April 1Pier 1 Imports Inc. more than doubled in the last two trading sessions, though it’s still down 97% since filing for bankruptcy on Feb. 17Companies that have begun planning for bankruptcy also saw their shares surge Monday, including:Chesapeake Energy Corp. jumped 182%GNC Holdings Inc. rose 106%Representatives for Chesapeake, Hertz and Whiting did not reply to a request for comment. GNC and J.C. Penney declined to comment.Meanwhile, debt securities tied to the companies continue to trade below par, implying a less-than-full recovery for creditors who are ranked well ahead of shareholders.Whiting Petroleum does have a plan on file which calls for a payout to current stockholders in the form of new shares. But as with most everything in bankruptcy, the plan is subject to court approval and could face challenges from higher-ranking creditors.(Adds Pier 1 Imports)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Having recently disentangled themselves from an acquisition deal to buy the ailing Victoria's Secret brand from L Brands (NYSE: LB) for $525 million, New York private equity firm Sycamore Partners may now be zeroing in on bankrupt retailer JC Penney (NYSE: JCP). Reuters reports knowledgeable sources say that Sycamore is sizing up its chances to buy JC Penney, or invest in it without an outright acquisition. The news is yet another twist in the ever more complex web of deals, offers, and legal maneuvers surrounding JC Penney's attempts to navigate bankruptcy and emerge as a viable retail company on the other side.
(Bloomberg) -- J.C. Penney Co. jumped on Friday after Reuters reported Sycamore Partners is in preliminary talks to buy the department-store company.Sycamore is considering purchasing J.C. Penney outright or making an investment in the company, Reuters said, citing three unidentified people familiar with the matter. The talks may not result in a deal, Reuters reported.J.C. Penney shares surged 55% to 32 cents on Friday.A deal with Sycamore could give J.C. Penney the lifeline it desperately needs after the 118-year-old department store filed for bankruptcy last month amid crushing debt. A mainstay of the American mall in the 20th century, J.C. Penney has been unable to find a way to stay relevant to modern-day shoppers.J.C. Penney has also contacted its landlords, including Brookfield Asset Management and Simon Property Group about potential agreements, Reuters said. The two groups could team up with Sycamore for an offer, according to Reuters.Representatives for J.C. Penney and Sycamore declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Private equity firm Sycamore Partners is in preliminary talks to acquire J.C. Penney Co Inc <JCP.N> out of bankruptcy should the U.S. department store chain's negotiations with its creditors fail, three people familiar with the matter said on Friday. J.C. Penney, which employs roughly 85,000 people, filed for bankruptcy protection in May after the coronavirus pandemic forced it to temporarily close its more than 800 stores across the United States, compounding financial woes that stemmed from years of dwindling sales. Sycamore is weighing acquiring J.C. Penney outright or making an investment in the troubled retailer, the sources said.