Amazon already ranks as the country’s No. 1 apparel retailer and owns the Whole Foods Market grocery chain. Now the e-commerce empire is reportedly looking to grow even bigger with a possible acquisition of JC Penney — the venerable department store chain that recently declared bankruptcy in the wake of the Chinese virus pandemic.
The news comes amid rumors that Amazon is also looking to acquire AMC Theatres, the largest cinema chain in the U.S., to complement its growing studio business. The Chinese-owned AMC has also suffered during the viral outbreak due to the forced closure of all movie theaters around the country.
Amazon has sent a team to Plano, Texas, which is where JC Penney is headquartered, according to a report this week from Women’s Wear Daily. An anonymous source told the fashion publication that the two companies are engaging in a dialogue, but no official announcement has been made.
“There is an Amazon team in Plano as we speak,” the publication reported. “There is a dialogue and I’m told it has a lot to do with Amazon eager to expand its apparel business.”
A possible deal might include some of JC Penney’s physical stores, which could be used by Amazon as distribution outlets.
Amazon has expanded its apparel business with such initiatives as Prime Wardrobe which offers free returns on many items.
JC Penney filed for Chapter 11 bankruptcy on Friday, saying that the coronavirus pandemic had battered its business. But the department store chain has been struggling for years and was planning to shutter 200 stores in 2020. The company has 846 stores and employs about 85,000 people.
Amazon has been steadily growing its empire through key acquisitions. The Seattle-based company acquired Whole Foods in 2017 for $13.7 billion. It snapped up the smart-home tech company Ring for in 2018 for an estimated $1 billion.
Amazon founder and CEO Jeff Bezos bought the Washington Post in 2013 for $250 million.
Follow David Ng on Twitter @HeyItsDavidNg. Have a tip? Contact me at dng@breitbart.com
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