J.C. Penney has entered into a purchase agreement with Brookfield Property Partners and Simon Property Group and a group of first lien lenders to acquire the company’s assets. The department store retailer said it expects the deal to be finalized before the holidays, allowing it to operate under new ownership outside of Chapter 11.
Under the terms of the deal, Brookfield and Simon take ownership of “substantially all” of Penney’s operating and retail assets. The first lien lenders will acquire all of Penney’s distribution centers and 160 of its real estate assets. Penney’s new owners have reached agreement with the lenders on master leases for the properties and distribution centers acquired by the lenders.
