Former Toys ‘R’ Us chairman and CEO, Gerald Storch, gives insight into the future of recovery to coronavirus malls.
After 118-year-old retail giant JCPenney came out of Chapter 11 bankruptcy in November, he plans a fresh start for 2021, starting with a search for a new leader.
JCPENNEY CLOSES MORE STORES IN 2021 AS NEW OWNERS MANUAL
The new owners of the retailer, Brookfield Partners and Simon Property Group, have announced that they are looking for someone who is “focused on modern retail, the consumer experience and the goal of creating a sustainable and lasting JCPenney.” The search will be conducted in partnership with Authentic Brands Group.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| 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, will retire from the company on Thursday. Soltau was brought to JC Penney’s leadership team in October 2018 after, according to President, he said he was president and CEO of JOANN Stores, a retailer of materials and crafts, and president of Shopko Stores. The appointment of Soltau at the time raised the company’s shares in the hope that she would help turn the company around.
Meanwhile, the chief investment officer of Simon Property Group, Stanley Shashoua, will take over as interim CEO on January 1, 2021.
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JC Penney filed for bankruptcy in May after the coronavirus pandemic plagued the retail industry. The company’s financial battle led to 154 store closures in 38 states in June and an additional 152 store closures and 1,000 job cuts in July.
In September, JC Penney said he had in principle reached a bailout agreement with his landlords, Simon and Brookfield, worth $ 800 million in cash and new term loan debt. The deal was approved in November by the U.S. Bankruptcy Court for the Southern District of Texas.
As part of the agreement, Simon and Brookfield would own 160 of JCPenney’s fixed assets and all of its distribution centers as part of a separate property management company. Bankruptcy lawyer Joshua Sussberg of Kirkland & Ellis said during a hearing in September that the bailout agreement would save about 70,000 jobs.
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In addition to the CEO’s search, the retail chain is planning to close additional stores in March.
“As part of our store optimization strategy that began our financial restructuring in June, we decided to close another 15 stores,” JCPenney said in a statement to USA Today. “These stores will begin liquidation sales later this month and will be close to the public until the end of March.”
Overall, the company’s restructuring will close almost a third of its 846 stores permanently in two years, leaving just over 600 locations.