NEW YORK — Mall owners Simon Property Group and Brookfield Property Partners have agreed to buy department store chain J.C. Penney out of bankruptcy and keep the chain running, according to several reports.
Penney’s lawyer Josh Sussberg announced the tentative pact, which will save roughly 70,000 jobs, during a brief hearing in bankruptcy court Wednesday. Reports indicate most J.C. Penney locations around the country will remain open.
The deal would split J.C. Penney into an operating company and two real estate holding companies, one owning 161 stores and the other holding distribution centers, with a master lease agreement between the two sides.
The 118-year-old department store based in Plano, Texas, filed for Chapter 11 bankruptcy protection in mid-May, one of the biggest retailers to do so since the pandemic temporarily shut down non-essential stores around the country.