PLANO, Texas — The sale of JCPenny is complete, and the retailer is exiting Chapter 11, the company has announced. It will continue to operate under the JCPenney banner.
Simon Property Group and Brookfield Asset Management Inc. have acquired substantially all of JCPenney’s retail and operating assets. An asset purchase agreement had previously been approved by the U.S. Bankruptcy Court for the Southern District of Texas on Nov. 9.
In addition, on Nov. 24, the court approved the company’s plan of reorganization to create separate property holding companies comprising 160 of the company’s real estate assets and all of its owned distribution centers, which will be owned by the company’s debtor-in-possession and first lien lenders. The stores will enter into master leases with the property holding companies and be operated by JCPenney. The property holding companies are expected to complete the court-supervised restructuring process and emerge from Chapter 11 bankruptcy protection in the first half of 2021.
“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 JCPenney CEO Jill Soltau. “With this closing, our operating company has exited Chapter 11 and is continuing under new ownership and the JCPenney banner.
“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,” she added.