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J.C. Penney rescued. Will it now find success and save the mall, too?

September 10, 2020


J.C. Penney announced yesterday that it has reached an agreement in principle with two of its landlords on a near eleventh-hour deal that will help the company avoid liquidating its business, saving about 70,000 jobs in the process.

Simon Property Group and Brookfield Property Partners will pay $800 million for the retailer — $300 million in cash and $500 million in new term debt. The two will acquire “substantially all” of Penney’s operating and retail assets valued at $1.75 billion.

Penney will also get an additional $2 billion in revolving credit from Wells Fargo once the deal is done, which would leave the retailer with $1 billion in cash to go forward with.

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