JCPenney Exits Bankruptcy
JCPenney exited Chapter 11 on Monday when it was bought by Simon Property Group and Brookefield Asset Management, a previously announced deal that saves the historic retailer.
“Today is an exciting day for our company, as we have accomplished our goal of putting JCPenney on a secure path for the future as a private company so that we can continue to serve our loyal customers,” said Jill Soltau, CEO of JCPenney. “With this closing, our operating company has exited Chapter 11 and is continuing under new ownership and the JCPenney banner. This milestone would not be possible without the commitment and hard work of our associates and the support of our vendor partners. Throughout the 2020 holiday season and beyond, we remain focused on implementing our Plan for Renewal to offer compelling merchandise, drive traffic, deliver an engaging experience, fuel growth and build a results-minded culture.”
“We have always been firm believers in JCPenney, and are very pleased to help preserve this iconic institution and save tens of thousands of jobs,” said David Simon, chairman, CEO and president of Simon Property Group. “JCPenney is now poised for a future focused on innovation and consumers, while continuing to navigate through the pandemic.”
“We are excited to help lead the turnaround of a storied institution while saving tens of thousands of jobs and continuing to serve over 35 million customers,” said Brian Kingston, CEO of Real Estate at Brookfield Asset Management. “This is exactly the type of investment our Retail Revitalization Program was designed to make and along with our partner Simon we have a successful blueprint in place to deploy our collective operational expertise and industry relationships to transform JCPenney through new innovations and offerings.”
With the completion of the sale, JCPenney has access to approximately $1.5 billion of new financing.