Simon Property Group and Brookfield Property Partners have agreed to buy J.C. Penney, lawyers for the department store chain said in a bankruptcy court hearing on Wednesday.
The two mall owners will pay roughly $300 million in cash and assume $500 million in debt, The New York Times reports. With the sale, J.C. Penney, which the deal values at $1.75 billion, will avoid a liquidation.
At the hearing, lawyer Joshua Sussberg said J.C. Penney is now "in a position to do exactly what we set out to do at the very beginning of these cases and that is to preserve 70,000 jobs, a tenant for landlords, a vendor partner, and a company that has been around for more than a century." J.C. Penney filed for Chapter 11 bankruptcy protection in May, the biggest retailer to do so amid the pandemic.
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