World News – USA – JCPenney begins new CEO quest for fresh start

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Former Toys ‘R’ Us Chairman and CEO Gerald Storch shares an insight into the future of shopping malls after the coronavirus recovery.

After emerging from Chapter 11 bankruptcy in November, 118-year-old retail giant JCPenney plans a fresh start in 2021, starting with a search for a new leader.

The retailer’s new owners, Brookfield Partners and Simon Property Group, announced that they are looking for someone who is focused on modern retail, the customer experience and the goal of creating a sustainable and lasting JCPenney. « The search is being carried out in collaboration with the Authentic Brands Group.

J. . C.. . The current CEO of Penney, Jill Soltau, will leave the company on Thursday. Soltau was brought to J.. C.. . Penney’s management team in October 2018 after positions as President and CEO of JOANN Stores, a retailer for fabrics and handicrafts, and President of Shopko Stores, according to the company. Soltau’s appointment caused the company’s shares to skyrocket at the time in hopes that it would help turn the company around.

In the meantime, Stanley Shashoua, Simon Property Group’s Chief Investment Officer, will take over as Interim CEO from January. 1, 2021.

J. . C.. . Penney filed for bankruptcy in May as the coronavirus pandemic ravaged retail stores. The company’s financial troubles resulted in 154 store closings in 38 states in June and an additional 152 store closings in July and 1. 000 job cuts.

In September, J. . C.. . Penney said it was basically on a bailout deal with its landlords Simon and Brookfield that was valued at $ 800 million in cash and short-term loan debt. The deal was approved by the U. S.. . Southern Texas Bankruptcy Court in November.

As part of the deal, Simon and Brookfield would own 160 JCPenney properties and all of their own distribution centers as part of a separate real estate holding company. Kirkland & Ellis’ bankruptcy attorney Joshua Sussberg said at a September hearing that the bailout deal was around $ 70. Would save 000 jobs.

In addition to the CEO search, the department store chain plans to close additional branches in March.

« As part of our store optimization strategy that began with our financial restructuring in June, we decided to close an additional 15 stores, » JCPenney said in a statement to USA Today. « These stores will begin liquidation sales later this month and will be closed to the public in mid-March. « 

Overall, the two-year restructuring of the company will permanently close almost a third of its 846 branches and leave just over 600 locations.

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J. . C.. . Penney, Simon Property Group Chairman