Approximately 43 retailers have filed for bankruptcies so far, according to S&P Global Market Intelligence report.
Latest retailers to go into administration include Le Tote, owner of Lord & Taylor, and Tailored Brands, parent company of Men’s Wearhouse.
S&P Global also told that many retail bankruptcies have already taken place in the US this year than in the past eight years.
The pandemic has created a major difficulty for the retailers as consumers’ preference for online shopping has increased.
Simon Property Group and Authentic Brands Group hope to salvage at least 125 stores of the apparel maker’s stores through their $350 million bid.
Mall owners Simon Property Group Inc. and Brookfield Property Partners LP agreed to acquire J.C. Penney Co. out of bankruptcy for $800 million
Keeping the beleaguered department-store chain alive amid the coronavirus pandemic; Simon and Brookfield, J.C. Penney’s landlords, have reached an agreement in principle to buy the chain, which filed for chapter 11 in May after the pandemic shut down nonessential shopping across the country.
If approved in bankruptcy court, the deal will prevent the closure of hundreds of locations across malls and shopping centers that face rising vacancies due to Covid-19 restrictions.
A group of lenders including H/2 Capital Partners LLC, Sculptor Capital Management Inc., Brigade Capital Management LP and Sixth Street Partners have signed on, betting that Penney can make money selling clothing, cosmetics and cookware despite the stark challenges facing American retail.
Simon and Brookfield will pay about $300 million in cash and assume $500 million in debt to buy J.C. Penney, lawyers for J.C. Penney said at a bankruptcy court hearing.
A certain portion of the company’s stores and distribution centers will become two separate property companies, according to the hearing.
In all, the deal values J.C. Penney at $1.75 billion, including the funds committed to support its business after it emerges from bankruptcy.
The future of the department store chain, which filed for Chapter 11 bankruptcy protection in May, had been unsettled, with liquidation being floated as a possibility earlier this month.
That would have represented a major collapse. J.C. Penney, which traces its roots to 1902, is the biggest retailer to file for bankruptcy during the pandemic, entering proceedings with nearly 850 stores and about 85,000 employees.
J.C. Penney Company, Inc., one of the nation’s largest apparel and home retailers, combines an expansive footprint of over 850 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to deliver style and value for all hard-working American families.
