Walloped by sagging sales and crippling debt, retailer J.C. Penney Co. Inc. wants to offload its real estate into a publicly-traded REIT as part of its Chapter 11 bankruptcy case. Some experts say this strategy could unlock the value of J.C. Penney’s properties and help it concentrate solely on selling apparel and other goods.
But will the REIT approach help keep the struggling department store chain in business?
Some observers are optimistic, hailing the proposed REIT as a smart move and a “pretty good bet.” Critics are dubious, calling the company-owned stores an “albatross” and labeling the REIT concept an “odd value proposition.”. . . more