JC Penny has new owners in a bankruptcy deal that will save 60,000 jobs

JC Penny has new owners in a bankruptcy deal that will save 60,000 jobs

J.C. Penny is one step closer to getting out of bankruptcy by the end of this month, which will save tens of thousands of jobs, at least in the short time since the announcement of a new owner contract.

A Texas judge on Monday allowed Simon Property Group and Brookfield Asset Management – the nation’s largest mall owners – to buy a sick retailer for $ 1.75 billion. J.C. Lawyers representing Penny told CBS Moneywatch that the acquisition would protect about 60,000 jobs that would be lost if the company was dissolved. They did not say how many stores would be saved as a result of the deal.

“Our goal from the beginning of this process is to ensure that JC Penny continues to serve our customers for decades, and this court approval fulfills that purpose,” said CEO Jill Soldov. Report.

Under JC Penny’s new structure, the company will be split into two companies. Simon & Brookfield own retail and operational assets, while JC Penny’s lenders control the company’s distribution centers and other real estate shares.

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J.C. Penny had 85,000 workers and more than 800 stores Filed for bankruptcy In May. Weighing in at about $ 4 billion in debt, the 100-year-old company has closed numerous brick and mortar spaces in recent years amid the growth of online shopping.

This year, JC Penny plans to close seven stores Close A total of 153, according to one government Filed. Texas will open nearly 600 seats when it restructures nearly a third of its stores over the next two years.

Coming out of bankruptcy, Soldav said the department is “in a strong position to build JC Penny’s long track record of caring for our partners, customers, sales partners and communities.”

Plano, Texas, will open 600 locations when the chain restructures nearly a third of its stores over the next two years. Its financial contract expires on November 16, and the company had to close the sale by November 20 to avoid leaving the business.

Simon Property has been running several retailers in its malls this year, including menswear Brooks Brothers, The fastest fashion seller Always 21 And denim shop Lucky brand.

More than two dozen retailers have filed for bankruptcy during corona virus infections. Neyman Marcus, J. Crew And Lord & Taylor.

The Associated Press contributed to this report.

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