J.C. Penney said that the U.S. Bankruptcy Court for the Southern District of Texas has approved the previously announced asset purchase agreement with Brookfield Asset Management, Inc., Simon Property Group and the company’s DIP and First Lien Lenders, which is supported by the unsecured creditors committee.
Pursuant to the deal, Brookfield and Simon will acquire substantially all of J.C. Penney’s retail and operating assets through a combination of cash and new term loan debt.
“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,” said Jill Soltau, CEO of J.C. Penney. “With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the J.C. Penney banner. We appreciate the efforts of the court and the support of our creditors in this process and putting us in a strong position to build on J.C. Penney’s long track record of taking care of our associates, customers, vendor partners and communities.”
The transaction remains subject to additional closing conditions and is expected to close in late November 2020.