May 20, 2020
Seattle-based Amazon.Com Inc. is reportedly in discussions to acquire JCPenney Co. Inc. The debt-laden Plano, TX-based retailer, which has about 850 stores across the U.S. and Puerto Rico, filed for Chapter 11 protection last week, citing COVID-19 damage.
Amazon is seeking to boost a key segment in its retail arsenal, and the deal for JCPenney’s apparel business would appear to fit that need. Among the options envisioned are converting JCPenney units into a version of Amazon’s high-tech retail format by creating a new tech-driven retail model. Another idea would involve converting some of JCPenney’s roughly 30 freestanding stores into distribution centers.
Amazon is also reportedly in talks to buy theatre operator AMC Entertainment Holdings Inc. Amazon bought Whole Foods Market for $13.7 billion in 2017.
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