(Bloomberg) -- J.C. Penney Co. jumped on Friday after Reuters reported Sycamore Partners is in preliminary talks to buy the department-store company.
Sycamore is considering purchasing J.C. Penney outright or making an investment in the company, Reuters said, citing three unidentified people familiar with the matter. The talks may not result in a deal, Reuters reported.
J.C. Penney shares surged 55% to 32 cents on Friday.
A deal with Sycamore could give J.C. Penney the lifeline it desperately needs after the 118-year-old department store filed for bankruptcy last month amid crushing debt. A mainstay of the American mall in the 20th century, J.C. Penney has been unable to find a way to stay relevant to modern-day shoppers.
J.C. Penney has also contacted its landlords, including Brookfield Asset Management and Simon Property Group about potential agreements, Reuters said. The two groups could team up with Sycamore for an offer, according to Reuters.
Representatives for J.C. Penney and Sycamore declined to comment.
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