An attorney representing the bankrupt department store chain, Joshua Sussberg of Kirkland & Ellis LLP, said that negotiations between the retailer and Authentic Brands Group, Simon Property Group and Brookfield Property Partners hit a wall this weekend. That means Penney has nine days to work out a deal with lenders to acquire the business or it will be forced to close significantly more stores than it planned. The retailer started with 850 stores when it filed for bankruptcy in May and has since announced plans to permanently shutter 150 of those.
CEOs of both Authentic Brands and Simon have said in recent months that they are interested in acquiring once-successful retailers on the cheap. The two companies, sometimes joined by Brookfield, have acquired the Aeropostale, Brooks Brothers, Forever 21 and Lucky Brand businesses in recent years.
