JCPenney sold its 15 JCPenney Outlet Stores to SB Capital Group for an undisclosed amount. The Columbus, Ohio-based Schottenstein affiliate will rebrand the stores as the new retail entity JC's 5 Star Outlet. JCPenney will continue to supply the outlet stores with overstocks and end-of-season merchandise.
"We've watched this operation for a number of years, and in doing so, could not be anything short of impressed with the business and the value offered to consumers," says Scott Bernstein, COO of SB Capital Group.
The acquisition also provided for the continued employment of the existing store staffs and management. SB Capital Group offered positions with JC's 5 Star Outlets to all 1,600 eligible employees of the JCPenney Outlet Stores.
In the fourth quarter of 2010, JCPenney announced that it would be exiting the outlet stores as part of its restructuring plan to discontinue the catalog print business.
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