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JC Penney sees bankruptcy protection exit by Christmas

FILE - In this Nov. 24, 2017, file photo, a shopper heads into a J.C. Penney store in Seattle. Photo: AP Photo/Elaine Thompson, File. FILE - In this Nov. 24, 2017, file photo, a shopper heads into a J.C. Penney store in Seattle.

The Associated Press
Created: October 21, 2020 06:56 AM

J.C. Penney believes it will emerge from bankruptcy protection before Christmas under a new ownership agreement that would save tens of thousands of jobs.

The beleaguered, century-old retailer said Wednesday that it has filed a draft asset purchase agreement with the two biggest mall owners in the U.S. Substantially all of J.C. Penney's retail and operating assets will be acquired by Brookfield Asset Management Inc. and Simon Property Group through a combination of cash and new term loan debt.

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Details of the deal that will save roughly 70,000 jobs and avert a total liquidation first emerged last month during a bankruptcy hearing.

J.C. Penney, which even before the pandemic had struggled to compete with the likes of Amazon.com, Target and Walmart, became one of the largest retailers to file for Chapter 11 bankruptcy protection this year amid a wave of store closures forced by the spread of COVID-19 infections in the U.S.


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