J.C. Penney is one step closer to exiting bankruptcy later this month after announcing a new ownership deal that, at least in the short term, will save tens of thousands of jobs.
A Texas judge on Monday cleared Simon Property Group and Brookfield Asset Management — the nation’s largest mall owners — to buy the ailing retailer for $1.75 billion. Lawyers representing J.C. Penney told CBS MoneyWatch the acquisition will preserve roughly 60,000 jobs that would’ve been lost if the company had liquidated. They did not say how many stores will be saved as a result of the deal.
“Our goal from the beginning of this process has been to ensure J.C. Penney will continue to serve customers for decades to come and this court approval accomplishes that objective,” CEO Jill Soltau said in a statement.
Under J.C. Penney’s new structure, the company is split into two entities. Simon and Brookfield own the retail and operations assets, while J.C. Penney’s creditors control the company’s distribution centers and other real estate holdings.
J.C. Penney had 85,000 workers and more than 800 stores when it filed for bankruptcy in May. Weighed down by some $4 billion in debt, the more than 100-year-old company has closed numerous brick-and-mortar locations in recent years amid the growth of online shopping. Read from source….