Mall owners Brookfield and Simon to pull JCPenney out of bankruptcy

J.C. Penney Company, Inc. has announced that it has reached an agreement in principle to sell JCPenney through a court-supervised sale process to Brookfield and Simon for 1.75 billion dollars, which includes a combination of cash and new term loan debt.

“We have determined that an agreement with Brookfield and Simon, as well as the formation of separate real estate investment trusts owned by our First Lien Lenders, is the best path forward to maximize value for our stakeholders, ensure we keep the most stores open and associates employed, and position JCPenney to build on our over 100-year history,” said Jill Soltau, Chief Executive Officer of JCPenney in a statement.

The company anticipates that it will emerge from the Court-supervised process operating under the JCPenney banner in advance of the 2020 holiday season. JCPenney, at the time of filing for bankruptcy in May, had more than 800 stores.

Picture:JCPenney newsroom