Amazon.com Inc (AMZN)

[NewMoney]

Report Says Amazon Could Be Interested In JCPenney Acquisition

Amazon (AMZN) is reportedly in talks with JCPenney (JCP), the debt-laden retailer that filed for bankruptcy protection last week. Trading in JCPenney stock was halted while Amazon stock moved up.

According to apparel industry trade publication Women's Wear Daily, Amazon has a team in Plano, Texas, where JCPenney is headquartered. The report cited an unnamed source saying there is a dialogue between the two companies.

The acquisition of JCPenney could potentially bolster the online retailer's burgeoning apparel business. It's also possible Amazon could be interested in acquiring some of the stores that JCPenney plans to sell and use them as distribution outlets.

Amazon, in a response to a request for comment, replied that it does not comment on "speculation."

Amazon stock climbed 2.4%, near 2,462.60, during morning trading on the stock market today.

JCPenney filed for Chapter 11 bankruptcy reorganization Friday, citing the coronavirus pandemic as a core reason. The retailer has been struggling for years and plans to close nearly 200 stores this year and an additional 50 stores next year.

Amazon has been rapidly expanding since the coronavirus struck. In order to fulfill spiking demand, Amazon hired 100,000 additional workers and then added another 75,000 workers.

Amazon has made bold moves in times past, such as its acquisition of Whole Foods Market and its large investments in electric vehicles.

Amazon stock is up about 31% this year.

https://www.investors.com/news/technology/amazon-stock-up-jcpenney-acquisition-report/?src=A00220&yptr=yahoo