By Maria Halkias – The Dallas Morning News
DALLAS – J.C. Penney’s lenders extended a key deadline over the weekend as negotiations continue on the destination of the Plano, Texas-based retailer.
Lenders filed a notice to extend the deadline, and the Wall Street Journal on Sunday reported on Sunday the hypothesis that Amazon would possibly be interested in buying some of Penney’s outlets with the main owner of the Simon Property Group grocery shopping center.
The deadline for lenders has been extended to Wednesday since Monday, according to a filing on Saturday in the U.S. Bankruptcy Court. Penney’s lenders are deciding on a bidder for retail company Penney, who is expected to leave Chapter 11 later this year.
The relevant hearing was postponed until Wednesday. A successful bidder for the 118-year-old branch chain can be approved until the end of August.
The concept that empty malls are perfectly suited to Amazon as distribution centers is not new. Amazon has purchased two shopping centers in Ohio for new distribution centers. And Amazon’s interest has been the subject of hypotheses about Penney’s bankruptcy.
Amazon distribution centers are guilty of processing visitor requests. In other words, Amazon warehouses only purchase products, but they also serve as distribution centers where affiliates temporarily and efficiently select, package, and ship orders. Amazon’s robotics systems, scanners, and computers at distribution centers can track millions of parts a day.
Penney filed for bankruptcy in May with a plan to split the company in two. One company would continue to operate in the J.C. Penney retail point-of-sale chain, and the other would be a genuine real estate investment accepted as true with Penney’s property, adding outlets and distribution centers.
In addition, Penney is in the process of promoting 142 store rentals where he now owns the final sales of stores. Penney also sells 24 retail outlets he owns, but he didn’t say if those outlets are final.
Although old grocery shopping malls no longer attract buyers, giant homes are at major intersections and where other people live in the suburbs and small towns.
The retail outlets of Macy’s, Nordstrom, Neiman Marcus and Penney’s have used their shopping centers as distribution centers in recent years and have accelerated the speed of this activity: the pandemic. More and more shoppers tried to pick up on the street for the first time when retail stores closed in March, April and May.
While Amazon has built distribution centers in Dallas-Fort Worth, it has also moved to neighborhoods with smaller delivery stations. To date, there are at least five in Dallas, Farmers Branch, Fort Worth and Garland. And the mall’s car parks are big enough to park many Amazon delivery trucks.
Delivery stations are part of Amazon’s effort to get closer to the customer. Those buildings are the final stop before an order heads out for delivery. Packages are sorted into routes to make sure promised delivery times are met, according to Amazon’s website.
Simon and Amazon are also in Sears locations, according to the Wall Street Journal article that quotes others familiar with the topic. Penney has 63 retail outlets at Simon Malls and Sears has 11 outlets, according to its annual report.
Another possible use of department store spaces, the article said, is for Amazon’s new grocery stores. The first one is in Los Angeles and is so far being used to fill online grocery orders. It’s in the Woodland Hills neighborhood but is not open to the public yet. Amazon has said the store will open later this year and will be different from Whole Foods Market, which Amazon purchased in 2017.
By Maria Halkias
Dallas Morning News
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