Apparel brand JCPenney has pursued the potential sale and partial leaseback of its home office building in Texas as part of its ongoing efforts to cut outstanding debt and effectively manage company’s expenses.
The retailer expects that the cost of leasing space within the building would be offset by a reduction in maintenance costs, property taxes and interest expense as a result of paying down debt with proceeds from the transaction, the press release from the apparel retailer mentioned.
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Marvin R. Ellison, Chief Executive Officer for JCPenney said, “With the tremendous growth and development currently taking place within Plano and North Texas, there’s no better time to take advantage of this lucrative market by pursuing a sale of our Home Office real estate. Even as we continue to deliver positive financial results across all aspects of our business, including delivering year over year gross margin increase in the fourth quarter, this presents an ideal opportunity to reduce outstanding debt and create long-term savings for the Company.”
Recently only, the apparel firm appointed Joe McFarland as its new Executive Vice President of Stores, who will be responsible for improving sales productivity along with streamlining operations at JCPenney stores.
JCPenney, one of the US’ largest apparel and home furnishing retailers, operates approximately 1,020 stores.
