A day after drawing $850 million on its revolving credit line, J.C. Penney appears to still be in dire enough financial straits that it would consider cashing out on its real estate assets. Bloomberg reports the department store operator is working with its financial advisers to come up with ways to turn its undervalued stores into capital, including sale-leasebacks and spinning a subsidiary company that would be able to issue debt.
A few weeks ago, the retailer also brought on The Blackstone Group to help it raise $1 billion through a private equity investment.
In the past, some retail analysts called for J.C. Penney to spin off its real estate into a REIT, but REIT analysts shot the idea down as too challenging to execute.
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