J.C. Penney has exited Chapter 11, completing its previously announced sale, under which Simon Property Group and Brookfield Asset Management have acquired substantially all of its retail and operating assets.
The company’s asset purchase agreement with Simon, Brookfield and the company’s DIP and first lien lenders had previously been approved by the U.S. Bankruptcy Court for the Southern District of Texas on November 9, 2020.
“Today is an exciting day for our company, as we have accomplished our goal of putting J.C. Penney on a secure path for the future as a private company so that we can continue to serve our loyal customers,” said Jill Soltau, CEO of J.C. Penney. “With this closing, our operating company has exited Chapter 11 and is continuing under new ownership and the J.C. Penney banner. This milestone would not be possible without the commitment and hard work of our associates and the support of our vendor partners. Throughout the 2020 holiday season and beyond, we remain focused on implementing our plan for renewal to offer compelling merchandise, drive traffic, deliver an engaging experience, fuel growth and build a results-minded culture.”
“We have always been firm believers in J.C. Penney, and are very pleased to help preserve this iconic institution and save tens of thousands of jobs,” said David Simon, chairman, CEO and president of Simon Property Group. “J.C. Penney is now poised for a future focused on innovation and consumers, while continuing to navigate through the pandemic. We are excited about J.C. Penney’s future growth and look forward to collaborating with the team to serve its customers and communities.”
With the completion of the sale, J.C. Penney said it has access to approximately $1.5 billion of new financing. This includes a new ABL facility, which was led by Wells Fargo, and the recently funded FILO facility, on which Pathlight Capital is serving as the FILO agent.