JC Penney’s retail and enterprise belongings to exit Chapter 11
© Reuters. FILE PHOTO: A customer enters a JC Penney Co store in Westminster, Colorado, USA
(Reuters) – JC Penney Co Inc announced Monday that its retail and business assets would leave Chapter 11 as two of its largest landlords, Simon Property Group (NYSE 🙂 and Brookfield Asset Management Inc, acquired almost all of such assets.
The legendary 118-year-old department store filed for bankruptcy in May after the COVID-19 pandemic forced it to temporarily close its then nearly 850 stores.
JC Penney will continue to operate the properties and distribution centers that have been relocated to the property holding companies.
Jill Soltau, chief executive officer, said the JCPenney banner will continue to serve its customers.
Upon completion of the sale, the company will have access to approximately $ 1.5 billion in new funding.
The property holding companies, which include 160 properties owned by the retailer and all distribution centers, are expected to complete the restructuring process and emerge from bankruptcy protection in the first half of 2021.
“We … are very excited to maintain this iconic institution and save tens of thousands of jobs,” said David Simon, Chief Executive of Simon Property Group.
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