SB Capital Group, a Columbus, OH-based Schottenstein affiliate, completed the acquisition of 15 JCPenney Outlet Stores from J. C. Penney Company Inc.
In preparation for the acquisition, SB Capital Group formed a new retail entity, JC's 5 Star Outlet. While the stores will operate for an extended transitional period as JCPenney Outlet Stores, an evolution will take place over the next 21 months to rebrand the stores as JC's 5 Star Outlet.
In addition, JCPenney will continue to supply the outlet stores with overstocks and end-of-season merchandise.
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.
Glen Gammons, whose 40 year career with JCPenney includes the last 11 years as head of the JCPenney Outlet Store Division, has accepted the position of CEO of JC's 5 Star Outlet.
"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," Scott Bernstein, COO of SB Capital Group said of the outlet operation.
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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