As JCPenney exits bankruptcy, its long-term outlook remains grim

New York CNN Business — JCPenney has survived to see its 119th holiday shopping season. JCPenney got final approval on its plans to emerge from bankruptcy just last week on the eve of the all-crucial holiday shopping season, thanks to a rescue by mall owners Simon Property Group and Brookfield Asset Management, who will now own and operate the company. “I think they’re hoping for a good holiday season, but they’re not necessarily expecting one,” said Neil Saunders, managing director at GlobalData Retail “I think under the new ownership, they have more time.” The new owners were compelled to rescue JCPenney because they couldn’t afford to have the anchor tenant at hundreds of their malls close down. “They have every motivation to keep this alive.” But Cohen said the problems that have dogged JCPenney for years won’t be solved simply by the new ownership giving it a new lease on life. “They’re going to have a less grim Christmas, but it’s nothing more than an extended going out of business sale.” Still the reorganization has given the company some breathing room it didn’t have ahead of the pandemic, said Reshmi Basu, an expert in retail bankruptcies at Debtwire.