J. C. Penney Company, Inc. (OTCPK:JCPN.Q) is moving forward with a sale that should be completed by this fall, attorney Joshua Sussberg of Kirkland & Ellis said during a court hearing. Sussberg called attention to a report earlier in the week from the New York Post that said Sycamore Partners Management, L.P. was planning to make a $1.75 billion bid to buy the 118-year-old department store chain and merge it with rival Belk Inc. He called the story “ill-informed” and said, regarding Sycamore's plans to merge Penney with Belk, “that is completely untrue.” There are three separate bids being considered for Penney's real estate and other assets, which would keep the retailer operating its own stores, Sussberg said. The bidders include Sycamore, a duo of U.S. mall owners Simon Property Group, Inc. (NYSE:SPG) and Brookfield Property Partners L.P. (NasdaqGS:BPY, and Hudson's Bay Company according to a person familiar with these discussions.

The person requested anonymity because the proposals remain confidential. Sycamore declined to comment. Representatives from Simon, Brookfield and Hudson's Bay did not immediately respond to CNBC's requests for comment.