JCPenney exits bankruptcy with sale to biggest landlords

JCPenney exited bankruptcy just in time for the holiday shopping crunch — in an unusual deal that leaves a downsized department-store chain privately owned by its biggest landlords.

The 118-year-old retailer exited Chapter 11 on Monday, bought by Simon Property Group and Brookefield Asset Management, in a previously announced deal that saves the historic retailer from the retail graveyard.

“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,” Jill Soltau, chief executive said in a statement.

“With this closing, our operating company has exited Chapter 11 and is continuing under new ownership and the JCPenney banner.”

JCPenney now has access to $1.5 billion in new financing, the company said.

The retailer had 850 stores across the country when it filed for bankruptcy protection in May, but has since shuttered 160 locations in a bid to become more profitable amid the pandemic-stricken retail landscape.

J.C. Penney said its management has moved out of the company’s headquarters in Plano, Texas, but it did not provide further details about its new location.