J.C. Penney considering real estate spinoff to raise cash

New York -- A Tuesday report by Bloomberg said that J.C. Penney has an additional plan to raise money; the retailer is said to be considering a spinoff of its real-estate holdings into a new unit that could issue debt.

Citing two unidentified sources, Bloomberg said Penney is also considering selling its real estate and then leasing it back as another avenue to free up money. And other assets, such as inventory, could be collateralized.

The sources said the company, which has not commented on the report, is undecided about which route or routes to take. Penney is trying to raise at least $1 billion.

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