JC Penney Bankruptcy Update: Retailer Skips Headquarters’ $2.45 Million Rent Payment

Bankrupt JC Penney has reportedly skipped the $2.45 million monthly rent payment for its headquarter offices in Plano, Texas.

The retailer’s landlord, Dreien Opportunity Partners, requested that the bankruptcy court force JC Penney to make the payment, which was due June 1, The Dallas Morning News reported. JC Penney filed for bankruptcy protection in May after temporarily closing all of its stores because of the coronavirus pandemic.

With the announcement that it would undergo a Chapter 11 restructuring, JC Penney announced that it would be permanently closing 242 stores, with the first 154 locations closing in the coming weeks.

JC Penney’s Plano-based headquarters was purchased by Dreien Opportunity Partners in 2016. The retailer is the largest tenant of the reported 1.8 million square feet campus, which JC Penney holds 1.13 million square feet of space of.

The property owned by Dreien Opportunity Partners has been posted for foreclosure with pending litigation, the news outlet said. JC Penney reportedly had a 15-year lease on the property.

As part of its filing, Dreien Opportunity Partners said that $1 million of the rent is needed to pay operating expenses that include utilities, security, and common area maintenance, The Dallas Morning News said.