Posted on 04/25/2022 6:48:40 PM PDT by Morgana
The owners of department store giant JCPenney have reportedly made a multibillion-dollar offer to acquire one of the chain's biggest rivals - Kohl's - two years after filing for bankruptcy and shutting down nearly a third of its stores.
The proposal from Simon Property and Canada-based Brookfield Asset Management - which together scooped the shopping mall stalwart out of bankruptcy in December 2020 to the tune of $1.5 billion - offers to buy the store at $68 a share, bringing the total value of the deal to $8.6 billion.
A source reportedly told The New York Post, the first to break the story, that the owners plan to maintain the identity of the two competing brands while streamlining operations and cutting costs by roughly $1 billion over the next three years.
The two chains would reportedly be run by a single management team during the initial stages of the merger, the source said. The companies also would have all of their in-house apparel manufactured by the same label.
If successful, the new business would nix previous plans to roll out Sephora stands inside its 689 Kohl’s stores, the insider revealed.
News of the prospective purchase caused Kohl’s shares to skyrocket Monday, surpassing to hit $60.39 - a five percent surge from Friday's close of $57.36.
Simon Property is run by CEO David Simon, the son of the late company co-founder Melvin Simon. Simon, 62, is also the nephew of Indiana Pacers owner Herb Simon, 87, who co-founded Simon Property with his late brother. The pair bought the team in 1983 for $10million.
(Excerpt) Read more at dailymail.co.uk ...
It is a bit misleading to call Simon and Brookfield “J C Penny” owners - they are both gigantic REITS that own thousands of commercial properties, including many malls. They probably own a lot of the malls where Kohl’s is an anchor store.
I don’t like that plan. Kmart halt Sears and helped drive them into the ground. JCPenney isn’t financially stable enough to be buying anyone.
Ugh....like United Airlines buying Continental....it will degrade the product.
Right now I miss Kmart so much
Yep, like in the movie “The Founder”...
“You don’t seem to realize what business you’re in. You’re not in the burger business, you’re in the real estate business. You build an empire by owning the land. What you ought to be doing is owning the land upon which that burger is cooked.”
Good movie!!
Not surprised. Kohls suck! Was great at one time. Hope Penney’s get better items in. Business want to do on-line shopping. I HATE THAT! But, can’t stop progress.
and I will do without!’ I’ll wear the better-made clothes I bought years ago and haven’t fallen apart.
JCP should not be running anything.
They have had years [decades] to get it figured out.
Kohls doesn’t have men’s Big & Tall so I have no reason to go in one. JCP, on the other hand, does sell B&T and I actually found a few shirts I liked in one recently. So maybe Kohls will start serving the normal sized population now?
Somehow this reminds me of Kmart going bankrupt and then buying Sears.
Everything financial has become smoke and mirrors.
Wait until they finally abolish cash and go 100% digital funny money.
Or it'll be called Two Broke Stores... Or Bankrupt Stores LLC.
I miss The Broadway.
They’re paying for the land not the retail boxes.
Post of the thread!
LOL...that’s my first thought, too! The JC Penney in Coeur d’Alene, ID shut down after their disastrous results and downsizing. The Kohl’s across the street and a bit up the road from Penney’s is still thriving. But not for long. The Penney’s e-staff will work their magic on Kohl’s now.
JC penny is still around.
I was surprised to find this out when I was looking for a feather pillow last year.
There was a store kinda near me in a little strip mall.
If only there were still Radio Shack stores
Then they can both go bankrupt together.
And bring back Blockbusters! There's been nothing to watch since they closed.
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