The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PLANO, United States — Department store operator J.C. Penney Co Inc said it is pursuing a potential sale and partial leaseback of its headquarters in Texas to reduce debt and costs.
J.C. Penney employs more than 3,000 workers at its Plano, Texas headquarters, which it has occupied since 1992.
The retail chain's decision comes at a time when several U.S. department store operators are looking to create value from their vast real-estate holdings as their core business of selling clothes and home goods come under pressure.
Hedge fund Starboard Value LP urged Macy's Inc last month to enter into joint ventures for its stores, including its flagship Herald Square store in New York, to realize greater value from its real estate assets.
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Struggling retailer Sears Holdings Corp laid out plans in April last year to raise more than $2.5 billion by creating a real estate investment trust, Seritage Growth Properties , that would hold about 254 Sears and Kmart stores. The company also entered into three joint ventures with mall operators, including Simon Property Group Inc and Macerich Co , to sell some of its stores.
J.C. Penney said on Friday the cost of leasing space would be offset by reducing maintenance costs, property taxes and lower interest expenses through paying down debt with proceeds from the sale.
CBRE Group Inc's Capital Markets unit has been selected to find buyers for the 1.8 million-square-foot office campus located in Legacy Business Park in Plano.
J.C. Penney had in 2014 decided to contribute a significant portion of the land surrounding its headquarters to a joint venture with a team of developers.
By Yashaswini Swamynathan; editor: Sriraj Kalluvila.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.