Penney Seeking Bids for Drugstore Chain
J.C. Penney Co. has launched a formal auction for its ailing Eckerd drugstore chain, though antitrust and pricing concerns could keep the pool of prospective buyers small, sources close to the situation said.
The Plano, Texas-based retailer recently asked banker CSFB to begin soliciting bids for Eckerd, the No. 4 U.S. drugstore chain, which suffers from pricing problems, difficulty keeping merchandise in stock and inconvenient locations.
Although Penney has not definitively decided to sell the operation, which accounts for 45% of its business, the company started the auction to gauge the interest of potential buyers, one source said.
Penney, which declined to comment, has said it wanted a course of action for the 2,700-store unit by year-end.
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