U.S. Bankruptcy Court approves sales of J.C. Penney.
J.C. Penney is on course to emerge from bankruptcy by Thanksgiving after a U.S. bankruptcy Court approved the sale of the ailing 118-year-old retailer to its two largest landlords & its primary lenders.
The U.S. Bankruptcy Court for the Southern District of Texas approved a purchase agreement, announced earlier this fall, that has substantially all of J.C. Penneys retail & operating assets acquired by Brookfield Asset Management Inc. & Simon Property Group through a combination of cash & new term loan debt. The approval followed a lengthy court hearing on Monday.
Still, the retailer faces an uphill battle to attract shoppers this holiday season as they stay away from the malls & stores for safety reasons & shop online more. Meanwhile, Amazon & big discounters like Walmart & Target are only getting stronger as they offer low prices & one-stop shopping.
J.C. Penney filed for Chapter 11 in May, becoming one of the largest retailers to do so during the pandemic amid a wave of store closures forced by the spread of COVID-19 infections in the U.S. More than two dozen retailers have filed for bankruptcy protection since the pandemic temporarily closed stores, restaurants, gyms & other businesses nationwide. Retailers are worrying about the effects on their business with a surge of new cases all over the country.
The Plano, Texas, chain will shed nearly a third of its stores in the next two years as it restructures, leaving just 600 locations open.