The deal that will save J.C. Penney saved has finally been approved by bankruptcy court.
The deal has been approved by the US Bankruptcy Court for the Southern District of Texas meaning that the 118 year old retailer will re-emerge from bankruptcy in time for the holiday shopping season, and save around 60,000 jobs in the process.
Simon Property Group and Brookfield Property Partners will acquire J.C. Penney’s retail operations for $1.75bn in cash and debt. As well as this, the retailer’s lenders will forgive $1bn in debt in exchange for six distribution centres and 160 properties.
“With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the J.C. Penney banner,” stated CEO Jill Soltau. “We appreciate the efforts of the Court and the support of our creditors in this process and putting us in a strong position to build on J.C. Penney’s long track record of taking care of our associates, customers, vendor partners and communities.”
