PE firm Sycamore Partners in talks to buy troubled store chain JC Penney

JC Penney, which employs about 85,000 people, filed for bankruptcy protection in May after Covid-19 pandemic forced it to temporarily shut its more than 800 stores across the US

Private equity firm Sycamore Partners is in preliminary talks to acquire JC Penney Co Inc out of bankruptcy should the US department store chain's negotiations with its creditors fail, three people familiar with the matter said on Friday.

JC Penney, which employs roughly 85,000 people, filed for bankruptcy protection in May after the coronavirus pandemic forced it to temporarily close its more than 800 stores across the United States, compounding financial woes that stemmed from years of dwindling sales.

Sycamore is weighing acquiring JC Penney outright or making an investment in the troubled retailer, the sources said.

There is no certainty that the talks