JCPENNEY PURSUES SALE OF HOME OFFICE CAMPUS
February 05 2016 - 8:00AM
PLANO, Texas
(Feb. 5, 2016) - J. C. Penney Company, Inc. (NYSE: JCP) today
announced that it is pursuing the potential sale and partial
leaseback of its Home Office building in Plano, Texas as part of an
ongoing effort to reduce outstanding debt and effectively manage
expenses. A combination of favorable market conditions and a
surplus of available square footage within the building make this
an attractive real estate opportunity for the Company.
"With the tremendous growth and
development currently taking place within Plano and North Texas,
there's no better time to take advantage of this lucrative market
by pursuing a sale of our Home Office real estate," said Marvin R.
Ellison, chief executive officer for JCPenney. "Even as we continue
to deliver positive financial results across all aspects of our
business, including delivering year over year gross margin increase
in the fourth quarter, this presents an ideal opportunity to reduce
outstanding debt and create long-term savings for the Company."
It is expected that the cost of
leasing space within the building would be offset by a reduction in
maintenance costs, property taxes and interest expense as a result
of paying down debt with proceeds from the transaction. CBRE
Capital Markets has been selected to market the 1.8
million-square-foot, Class A office campus located in Legacy
Business Park in Plano, Texas. The new owner will have the
opportunity to market over 650,000 square feet of contiguous space
within the coveted Legacy West submarket. These actions follow a
decision in 2014 to contribute a significant portion of fringe land
around the Home Office to a joint venture with a team of
developers.
JCPenney has occupied the
three-story office building as its global headquarters since its
completion in 1992. Situated on a 64-acre site near the
intersection of Dallas North Tollway and State Highway 121, the
Legacy corridor is home to corporate and regional headquarters for
numerous Fortune 500 companies.
Media Relations:
(972) 431-3400 or jcpnews@jcp.com
Investor Relations:
(972) 431-5500 or
jcpinvestorrelations@jcpenney.com
About JCPenney:
J. C. Penney Company, Inc. (NYSE:
JCP), one of the nation's largest apparel and home furnishing
retailers, is dedicated to fitting the diversity of America with
unparalleled style, quality and value. Across approximately 1,020
stores and at jcp.com, customers will discover a broad assortment
of national, private and exclusive brands to fit all shapes, sizes,
occasions and budgets. For more information, please visit
jcp.com.
Forward-Looking
Statements
This release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as
"expect" and similar expressions identify forward-looking
statements, which include, but are not limited to, statements
regarding sales, gross margin, selling, general and administrative
expenses, earnings and cash flows. Forward-looking statements are
based only on the Company's current assumptions and views of future
events and financial performance. They are subject to known and
unknown risks and uncertainties, many of which are outside of the
Company's control that may cause the Company's actual results to be
materially different from planned or expected results. Those risks
and uncertainties include, but are not limited to, general economic
conditions, including inflation, recession, unemployment levels,
consumer confidence and spending patterns, credit availability and
debt levels, changes in store traffic trends, the cost of goods,
more stringent or costly payment terms and/or the decision by a
significant number of vendors not to sell us merchandise on a
timely basis or at all, trade restrictions, the ability to monetize
non-core assets on acceptable terms, the ability to implement our
strategic plan including our omnichannel initiatives, customer
acceptance of our strategies, our ability to attract, motivate and
retain key executives and other associates, the impact of cost
reduction initiatives, our ability to generate or maintain
liquidity, implementation of new systems and platforms including
EMV chip technology, changes in tariff, freight and shipping rates,
changes in the cost of fuel and other energy and transportation
costs, disruptions and congestion at ports through which we import
goods, increases in wage and benefit costs, competition and retail
industry consolidations, interest rate fluctuations, dollar and
other currency valuations, the impact of weather conditions, risks
associated with war, an act of terrorism or pandemic, the ability
of the federal government to fund and conduct its operations, a
systems failure and/or security breach that results in the theft,
transfer or unauthorized disclosure of customer, employee or
Company information, legal and regulatory proceedings and the
Company's ability to access the debt or equity markets on favorable
terms or at all. There can be no assurances that the Company
will achieve expected results, and actual results may be materially
less than expectations. Please refer to the Company's most
recent Form 10-Q for a further discussion of risks and
uncertainties. Investors should take such risks into account and
should not rely on forward-looking statements when making
investment decisions. Any forward-looking statement made by us in
this press release is based only on information currently available
to us and speaks only as of the date on which it is made. We
do not undertake to update these forward-looking statements as of
any future date.
###
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: J. C. Penney Company, Inc. via Globenewswire
HUG#1983987
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