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

September 10, 2020

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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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