Ian Ritter is national online editor for GlobeSt.com/RETAIL.
PLANO, TX-J.C. Penney has sold Lojas Renner, its 62-store department store chain in Brazil, through a public stock offering in that country. Penney executives say that they expect net proceeds to total $260 million from the transaction.
Renner stores design and sell men's, women's and children's apparel under 11 private brands. A majority of its stores are mall-based, though a handful of its units are stand-alones.
The retailer was formed in 1912 in Rio Grande do Sul as a branch of a textile company operated by the Renner family. J.C. Penney acquired the chain, which operated 21 stores at the time, in 1998 under the subsidiary J.C. Penney Brazil. Most of Renner's stores are in Southern Brazil, and executives are planning an expansion in the Northern half of the country.
Renner will release its first quarterly financial report on July 29. Penney will classify the chain's operating results as discontinued operations on its June sales report and in its next quarterly results.
Penney officials first announced in May their intention to sell the Renner stake. In its annual report, J.C. Penney revealed that Renner's 2004 sales were $329 million, up from $273 million the previous year. Last year the retailer sold its six department stores in Mexico to Grupo Sanborns S.A. de C.V. of Mexico City and recorded a loss of $14 million on that venture. The company currently operates just over 1,000 units in the US and Puerto Rico.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
