JC Penney looking at possible HQ sale and partial leaseback

AP News
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Posted: Feb 05, 2016 9:57 AM
JC Penney looking at possible HQ sale and partial leaseback

NEW YORK (AP) — J.C. Penney is considering selling and partially leasing back its headquarters to help lower debt and create long-term savings.

The department store operator said Friday that it has a surplus of square footage available in the Plano, Texas office building, with favorable market conditions making it a good time for such a real estate transaction.

J.C. Penney Co. has been in the three-story building since 1992.

The company had a strong holiday season. A key sales metric rose 3.9 percent as shoppers picked up home goods and other gifts. Earlier this month it started selling refrigerators, washing machines and other appliances at some of its stores for the first time in more than 30 years.

J.C. Penney shares edged up 8 cents to $7.44 in morning trading Friday. Its shares are down more than 4 percent over the past year.