JCPenney has cleared its first hurdle with the company’s exit from Chapter 11 bankruptcy protection, and now faces its next challenge of surviving in a retail environment that has not been kind to department stores in recent years.
Exiting bankruptcy comes with the completion of its previously announced sale, under which Simon Property Group and Brookfield Asset Management, Inc. have acquired substantially all of JCPenney’s retail and operating assets (OpCo).
The company’s asset purchase agreement with Simon, Brookfield and the Company’s Debtor-in-Possession 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 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, CEO of JCPenney. “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.”