J.C. Penney sells Simon Property stake for $248M

Back to TopCommentsE-mailPrintBookmark and Share

J.C. Penney Co. said Monday that it is selling the bulk of its interest in mall developer Simon Property Group Inc. for $248 million as it focuses on its core business.

The Plano, Texas, company said the sale announced Monday was the first step in a plan, put in place last year, to sell off assets that don't make up the crux of its department store business. J.C. Penney also said the move bolstered its balance sheet.

Under a new CEO, former Apple Inc. executive Ron Johnson, J.C. Penney is overhauling every aspect of its business from its pricing to the brands it carries. But some investors have concerns about the company's ability to turn its business around as sales trends deteriorate.

J.C. Penney said that Indianapolis-based Simon redeemed 2 million units of limited partnership interests from the department store chain for $248 million. JCP Realty, a unit of J.C. Penney, kept about 205,000 limited partnership units.

J.C. Penney received the units at the time of Simon's initial public offering in 1993 as part of joint-venture investments the companies made together in several shopping malls.


  • Did You Have a Comment To Make?
    Kay, I am sure you think you made a point, but your post came across as just crazy ranting. Also, PepsiCo posted $9.63 billion in profits in 2011 (about $1 billion more profitable than Coca-Cola in 2011). So, if that is your idea of "going under," please sign me up because I would be over 9 billion dollars richer. Now, if you have a sensible comment to post, and you want to explain what point you are trying to communicate, then please do so. Otherwise, you might want to channel your energies into something more constructive.
  • Shopping?
    i think JCP is getting the message? people dont want things shoved in their faces and now JCP is going to go under... maybe Coke should wake up too before they end up going the way of Pepsi and JCP! Redact SRGL or they can just go under too!
    • Bolsters?
      How does converting securities to cash bolster the Balance Sheet? Were they carrying them at less than market value? Sounds to me more like a last ditch effort to raise cash. I wonder what JCP's cash burn rate is, and how much time this buys them. Not much, I would think.

    Post a comment to this story

    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
    You are legally responsible for what you post and your anonymity is not guaranteed.
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
    Subscribe to IBJ
    1. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

    2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

    3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

    4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

    5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.