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JC PENNEY CO ANNOUNCES ITS EXIT OF RETAIL AND OPERATING ASSETS FROM CHAPTER 11 AFTER SIMON AND BROOKFIELD DECIDE TO ACQUIRE THESE ASSETS.

By Pavankumar on Dec 10, 2020 | 04:30 AM IST

J.C. Penney Co Inc announced that its retail and operating assets would exit Chapter 11, as reported by Reuters on Monday, December 7, 2020. This decision is taken as a result of two of Penney Co’s biggest landlords, Simon Property Group and Brookfield Asset Management Inc acquiring almost all of its retail and operating assets.

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The company said that it would continue its operations of the properties and distribution centers that are acquired by the property holding companies. J.C Penney Co, a 118-year old departmental store, had filed for bankruptcy in the month of May as the COVID-19 breakdown affected its business and pushed it to close almost 850 of its stores.

“JCPenney banner will continue to serve its customers. With the completion of the sale, we will have access to about $1.5 billion in new financing,” said CEO Jill Soltau. Whereas CEO David Simon of Simon Property Group said, “We are pleased to help preserve this iconic institution and save tens of thousands of jobs.”

The court has given its approval for the company’s plans to reorganize and to create a separate property holding companies that include 160 of the company’s real estate assets and all of its distribution centers. Access to $1.5 billion of new financing would be available after finalizing the sale. JC Penney says that currently it is focused on new and innovative ways to satisfy its loyal customers.


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