Mall owners close to buying JC Penney out of bankruptcy

Mall owners close to buying JC Penney out of bankruptcy
Posted at 4:25 PM, Sep 09, 2020
and last updated 2020-09-09 16:25:47-04

NEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a deal to buy department store chain, J.C. Penney, out of bankruptcy and keep the chain running.

Penney's lawyer Josh Sussberg announced the tentative pact, which will save roughly 70,000 jobs, during a brief hearing in bankruptcy court Wednesday.

More than 600 stores are expected to be saved, USA Today reported.

According to the Wall Street Journal, Simon and Brookfield will own about 490 locations and a group of lenders will own 160 stores.

Sussberg noted that a letter of intent including details of the pact will be filed with the bankruptcy court the next day.

The 118-year-old department store based in Plano, Texas, filed for bankruptcy protection in mid-May, one of the biggest retailers to do so since the pandemic temporarily shut down non-essential stores around the country.