Publisher’s note:
We ran a story a few weeks ago about a rumored deal by Amazon for JC Penney and we speculated how such an arrangement might make sense.
Now the Wall Street Journal has run a story that two powerhouse firms in the shopping center space may be considering a bid for the beleaguered Penney’s
Chain with the object being to protect their space and shape their destiny as more and more tenants go by the wayside.
Just this week GNC filed for Chapter 11 bankruptcy, following Payless Shoes, Gymboree, Modell’s, Nieman Marcus, J Crew etc. JC Penney filed in May.
Why would these two shopping center giants want to make a move like this. Simple- self-preservation. They are under intense pressure to keep tenant defaults to a minimum and wait until the market turns. How tired of shopping from home and using Amazon will the public get is anyone’s guess but it is somewhat likely that cooped up, angry shoppers will power a resurgence at the mall. As stores reopened around the country, lines that lasted for hours formed around stores. I predict that post Covid-19 we will see a strong return to normal shopping habits albeit not what we once saw pre-online shopping but to very respectable levels.
You heard it here folks. Someone will buy JC Penney, we will all go shopping and try on clothes and the mall operators will experience a resurgence. Now read our story about Mall of America missing its mortgage payments.
This publishing stuff is an inexact science.
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Stay safe!
RB
