JCPenney sells Mexico operation
October 30, 2003-- Home Textiles Today,
Plano, TX — J.C. Penney Corporation Inc. and its subsidiary, J. C. Penney Mexico Inc. have announced that they have entered into an agreement to sell their Mexico department store operation to Grupo Sanborns S.A. de C.V. of Mexico City.
The stock sale transaction is expected to result in a pre-tax loss of approximately $40 million to JCPenney Company, largely due to currency translation costs accumulated since operations began in 1995 and that have previously been reflected through reductions in stockholders' equity.
The transaction will result in positive cash flow of approximately $25 million, including future anticipated tax benefits. The six stores that were part of the operation include: a 165,955-square-foot unit in Monterrey, a 160,805-square-foot unit in Leon, a 179,689-square-foot unit in Mexico City, an 86,520-square-foot unit in Chihuahua, an 81,709-square-foot unit in Cancun and a 77,864-square-foot unit in Merida.