J.C. Penney's Retail And Operating Assets To Exit Chapter 11

(RTTNews) - Struggling retailer J. C. Penney Monday said its retail and operating assets would exit Chapter 11 after Simon Property Group and Brookfield Asset Management, Inc. acquired substantially all of the 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.

"Today is an exciting day for our company, as we have accomplished our goal of putting JCPenney on a secure path for the future as a private company so that we can continue to serve our loyal customers," said Jill Soltau, Chief Executive Officer of JCPenney. "With this closing, our operating company has exited Chapter 11 and is continuing under new ownership and the JCPenney banner.

J.C. Penney had filed for bankruptcy protection in mid-May, citing the impact of unprecedented COVID-19 pandemic on its business.

Like majority of retailers across the country, J.C. Penney were forced to close stores for months due to the lockdown restrictions due to the coronavirus pandemic that hurt their sales.

Even before the pandemic outbreak, slowing foot traffic amid the ever-increasing online competition from industry majors and the changing consumer habits had led to many retailers shuttering stores and seeking bankruptcy protection.