Fashion

JCPenney emerges from Chapter 11 bankruptcy


JCPenney emerges from Chapter 11 bankruptcy

Iconic US department store chain JCPenney has exited Chapter 11
bankruptcy just in time for the vital holiday shopping period.

The company announced Monday it has completed its previously announced
sale, under which Simon Property Group and Brookfield Asset Management,
Inc. have acquired substantially all of the company’s retail and operating
assets.

“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, in a statement.

“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.”

Brian Kingston, CEO of real estate at Brookfield Asset Management, said:
“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.”

Like the majority of retailers across the country, JCPenney was forced
to close stores for months due to lockdown restrictions earlier this year,
adding to already difficult pre-Covid trading as the retailer struggled
with slowing foot traffic amid growing competition from online rivals.

JCPenney filed for bankruptcy protection in mid-May, citing the impact
of the Covid-19 pandemic on its business. It entered into a restructuring
support agreement with lenders of its first lien debt to reduce its
outstanding debts and strengthen its financial position.

That same month, Neiman Marcus Group Inc., J.Crew Group Inc., and Stage
Stores Inc. also filed for bankruptcy protection, while in the following
months, Brooks Brothers and Lord & Taylor followed the same path.

Photo credit: JCPenney newsroom



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