J.C. Penney Exploring Sale of Texas Headquarters
February 05 2016 - 9:20AM
Dow Jones News
J.C. Penney Co. said Friday that it is exploring a sale of its
Plano, Texas, headquarters as part of the retailer's push to reduce
its debt.
Penney said a strong real-estate market in the area, located
just outside of Dallas, and an excess of available space in the
three-story office building make the sale an attractive
opportunity.
In addition to reducing its debt, which stood at over $5 billion
as of Oct. 31, the sale would also help the company cut back on
expenses. Penney would lease back space in the 1.8 million square
foot building, but the company would have reduced maintenance costs
and property taxes.
Penney, which has seen its sales improve recently, is the latest
retailer to look to its real-estate assets as a way to bolster its
balance sheet.
Macy's Inc., under pressure from activist investor Starboard
Value LP, has made a number of moves to unlock the value of its
property holdings. Macy's has said it is looking for partners to
redevelop some of its malls and flagship stores, such as its Herald
Square location in Manhattan.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 05, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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