As some businesses close their doors due to the pandemic, others are using the opportunity to grow their reach.
And it looks like Amazon may be wasting little time with another big move in the Metroplex. This morning, fashion news outlet Women’s Wear Daily (WWD) reported that the online retail giant has swooped into Plano with potential intentions to purchase faltering J.C. Penney.
“There is an Amazon team in Plano as we speak,” WWD wrote. “There is a dialogue and I’m told it has a lot to do with Amazon eager to expand its apparel business.”
J.C. Penney has been struggling for years, facing delisting from the NYSE in 2019 and again earlier this year. However, that was before the Covid-19 pandemic. Like many other retail businesses, J.C. Penney was hit hard by lockdowns and filed for bankruptcy last week. In its filing the company reported having $500 million in on-hand cash. In addition, SmarterAnalyst reports the company has received $900 million in financing from its existing lien lenders.
The deal would likely be an easy one for Amazon who saw its stocks rise to nearly $2,500 on Tuesday, while J.C. Penney’s fell to $0.18 on Monday before being halted. Not to mention, founder and CEO Jeff Bezos is on track to become the world’s first trillionaire.
North Texas is already home to a large Amazon presence, with hundreds of thousands of square feet of warehouse space spread across 13 fulfillment centers in the region. Currently, the company is working to hire about 1,500 workers for a center in Dallas’ Oak Cliff neighborhood, which the city is offering about $2 million in economic incentives for.
Amazon has not confirmed any talks with J.C. Penney's publicly and it's uncertain whether anything will materialize. Although, due to many smaller companies shutting down, Amazon has room to grow in the market.
It is also worth noting that Amazon has seen strikes and protests nationwide at its facilities due to working conditions and sick leave. Since the pandemic, at least two Amazon workers in North Texas have tested positive for the virus.
“As part of the debtor-in-possession commitment from its existing lenders, JCPenney will explore additional opportunities to maximize value, including a third-party sale process,” the company wrote in its Chapter 11 filing announcement.
