Sears Holding Corp. (SHLD) filed for bankruptcy late Sunday night Oct. 14. And instead of seeking an outright sale of the entire company, which, had there been a buyer, would have been to the delight of shareholders, it's likely the crashing retailer will liquidate tons of inventory.
That could be to the delight of JC Penney.
TheStreet's Zev Fima, analyst for Jim Cramer's Action Alerts Plus team, says JC Penney could be right in the middle of the sweepstakes for Sears inventory. JC Penney could buy tons of Sears inventory at a steep discount to market, which could act as at least somewhat of a tailwind to its margins.
JC Penney is yet another brick-and-mortar retailer that has suffered at the hands of Amazon (AMZN) - Get Report and broader e-commerce. Its market cap is now at $525.88 million, a far cry from where it was before the e-commerce boom. Now, the retailer is strapped with debt, and struggling to keep its head above water.