Indianapolis-based Simon Property Group Inc. (NYSE: SPG) is reportedly in talks with Amazon.com (Nasdaq: AMZN) to fill empty store space at many of its locations. The Wall Street Journal reports the companies are looking into turning vacant JCPenney and Sears stores into last-mile Amazon distribution hubs.
Sears Holdings Corp. filed for Chapter 11 bankruptcy protection in 2018 and JCPenney did the same earlier this year. Sears has closed a number of stores throughout Indiana and JCPenney in June announced plans to close several Hoosier stores.
Simon has 63 JCPenney stores and 11 Sears stores on its properties, according to a recent SEC filing.
The publication cites sources, who said it is possible Simon and Amazon may not reach an agreement on the vacant space. It is also not known how many stores Amazon may utilize if an agreement is reached.
CNBC reached out to both Simon and Amazon, but both declined to comment.
Simon’s stock rose more than 10% Monday after the report was released. The company is slated to release its quarterly earnings report after the market closes.
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