JCPenney sells headquarters for $353 million

By

Obi Anyanwu

Published
Jan 5, 2017

JCPenney announced this week that it has completed the sale of its Plano, TX headquarters and 45 acres to Dreien Opportunity Partners for $353 million. The retailer added that it would lease back approximately 65% of the building, leaving the remaining square footage available for new tenants.

 
"Since we began exploring the sale of our Home Office, we have been quite pleased by the level of interest in the building,” said JCPenney Chairman and CEO Marvin R. Ellison. "This transaction also represents a significant financial milestone for the Company, as proceeds from the sale give us the opportunity to reduce outstanding debt and make improvements to our workspace, creating a modern and efficient environment that fosters productivity and seamless collaboration."
 
As of October 29, 2016, the retailer has an outstanding debt of $4.5 billion, which is lower than the $5.15 billion debt from 2015.

JCPenney cut its full year sales growth forecast in November following a decrease in net sales and comparable sales and poor performances from its apparel categories. Analysts expected the retailer’s same store sales to increase and for its net sales for the quarter to be $2.95 billion. JCPenney also achieved its 11 straight quarterly net loss of $67 million.