Amazon might buy bankrupt JCPenney, a partnership that could benefit everyone involved.

WHAT HAPPENED: JCPenney filed for Chapter 11 bankruptcy and will permanently close 242 of its 846 stores; its ecommerce business will continue to operate as usual and 115 stores will reopen this week after stay-at-home orders expire in some states. According to WWD, Amazon is looking to acquire all or some parts of the retailer.

WHY IT MATTERS

This acquisition could help JCPenney evolve and expand Amazon’s physical footprint. While Amazon’s acquisition interests remain unclear, the ecommerce giant could further its physical footprint with access to JCPenney’s real estate portfolio as well as open more distribution centers across the country. If Amazon were to keep the JCPenney brand intact, it could be the ideal partner to save the department store, modernizing and digitizing its business model while reaping the benefits of its physical locations. However, taking on the struggling department store’s inventory won’t help to attract Amazon’s desired luxury shoppers.