If you have been following the news, you know that JC Penney is officially bankrupt, and is getting ready to close many of its department stores.
While there has been recent talk that Amazon might buy JC Penney, as of now it looks like the retailer doesn't have a good chance of surviving.
If you are a retailer, or wholesaler, that is looking to buy merchandise at a great price, you should keep your eyes open for the expected JC Penney upcoming sales.
If the mall based retailer is forced to close many, or all, of its department stores, there will be a tremendous amount of merchandise that will be liquidated.
Retailers that are going out of business tend to hire liquidators such as Hilco or Gordon Brothers. These liquidators usually buy the contents of the stores, and then run sales through which they aim to make a profit on the inventory which they have bought.
Because the liquidators do not want to be stuck with any merchandise, they slash prices to as low as 95% below the original retail prices.
When attending the sales, you can also approach the representatives of Hilco and Gordon Brothers, and make an offer for any merchandise that you are interested in buying.
Although the longer you wait, the bigger the discounts will be, the flipside is that there will be less merchandise available.
I have personally shopped at JC Penney, and I'm a shareholder as well.
JC Penney has both brand name and private label products. There are well known brands for sale such as Levi's, Star Wars, Disney, Lego, and The Original Arizona Jean Company.
You should have a good opportunity to make money if you can buy brand name merchandise at 90-95% below the original retail price.
Although I am a shareholder, this article in no way addresses investing in the stock of JC Penney. Investment decisions should only be made after consulting a licensed financial adviser.