News for North Texas
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
News

Mall Owners Close To Buying JC Penney Out Of Bankruptcy

J.C. Penney Store front
Charles Krupa
/
Associated Press

The 118-year-old department store based in Plano filed for Chapter 11 bankruptcy protection in mid-May, one of the biggest retailers to do so since the pandemic.

Mall owners Simon Property Group and Brookfield Property Partners are close to a deal to buy department store chain J.C. Penney out of bankruptcy and keep the chain running.

Penney’s lawyer Josh Sussberg announced the tentative pact, which will save roughly 70,000 jobs, during a brief hearing in bankruptcy court Wednesday.

Sussberg noted that a letter of intent including details of the pact will be filed with the bankruptcy court in the next day.

The 118-year-old department store based in Plano 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.

Sussberg said Penney will be left with $1 billion in cash after the deal is completed.

Neither Simon nor Brookfield responded to requests for comment.

KERA News is made possible through the generosity of our members. If you find this reporting valuable, in the spirit of Giving Tuesday, consider making a tax-deductible gift today. Thank you.