A J.C. Penney store in Laguna Hills, California
Scott Mlyn | CNBC
For bankrupted J.C. Penney, a liquidation is “not in the cards,” according to the department store chain’s attorney.
Penney is moving forward with a sale that should be completed by this fall, attorney Joshua Sussberg of Kirkland & Ellis said during a court hearing Tuesday afternoon.
“I want to say, unequivocally, we have had not one discussion about a liquidation,” Sussberg said about Penney’s restructuring process. “It’s simply not in the cards.”
Sussberg called attention to a report earlier in the week from the New York Post that said the private-equity firm Sycamore was planning to make a $1.75 billion bid to buy the 118-year-old department store chain and merge it with the department store chain Belk.
He called the story “ill-informed” and said, regarding Sycamore’s plans to merge Penney with Belk, “that is completely untrue.”
Sycamore declined to comment.
There are three separate bids being considered for Penney’s real estate and other assets, which would keep the retailer operating its own stores, Sussberg said.
He declined to name the bidders, saying the proposals are confidential.
This story is developing. Please check back for updates.