By George Anderson
With $2.5 billion to play around with after it pays down $500 million in debt, J.C. Penney has plans to go shopping for real estate, reports MarketWatch.com.
In a conference call to announce the company's financial results, Penney's chief financial officer Bob Cavanaugh said, "We have got enough resources there to be very aggressive should properties come on to the market that make financial and economic sense in terms of their pricing."
Separately, in a released statement concerning the company's operating results, Penney chairman and chief executive Mike Ullman said, "2004 was a breakout year for JCPenney as a result of the organization's focus on the execution of our business plan. The company has strong momentum as we pursue compelling merchandise initiatives that respond to the needs and wants of our customer. Based on our improved operating performance, completion of the sale of Eckerd and the ongoing capital repositioning program, the company's financial position has improved significantly. As we enter 2005, the company has increased financial flexibility to support the long range plan that we are developing and places us in a good position to implement additional capital structure repositioning actions."
Moderator's Comment: Considering its current financial position and the competitive environment, where would you take J.C. Penney if you were in Mike Ullman's place? - George Anderson - Moderator