Will Amazon Save Bankrupt JC Penney? Retailers In Talks Over A Possible Acquisition

In the midst of its bankruptcy filing, JC Penney may have reportedly found an unlikely buyer in Amazon (AMZN).

The e-commerce giant has been in talks with JC Penney regarding a possible acquisition of all or part of the retailer’s real estate as Amazon representatives are currently in Plano, Texas, where the company is headquartered,” a source for WWD (via Retail Gazette) said.

“There is a dialogue and I’m told it has a lot to do with Amazon eager to expand its apparel business — for sure,” the source told the news outlet. The source also suggested that Amazon has been considering a move into physical retail for some time, where locations could be transformed into “a new tech driven retail model.”

While it was unclear at the time of writing exactly what Amazon’s plans are for JC Penney or its real estate, it is possible that it could be interested in using some store locations for fulfillment warehouses.

“Penney’s has about 30 freestanding locations with a lot of land, which could be converted,” the source said. “They do have some good real estate.”

JC Penney filed for Chapter 11 bankruptcy protection on Friday and announced on Monday that it would be closing 252 stores out of its about 850 locations over the next two years. The struggling retailer is looking to reorganize its retail business and did say in a regulatory filing that it would consider a buyer for its assets.

JC Penney’s bankruptcy filing follows that of Neiman Marcus, J. Crew, and Stage Stores, which all filed for Chapter 11 in May amid the coronavirus pandemic.

Shares of Amazon stock were up 1.95% as of 12:44 p.m. EDT on Tuesday.