Jesse Penny is one step closer to coming out of bankruptcy later this month, after announcing a new ownership deal that will save thousands of jobs, at least in the short term.
A Texas judge on Monday approved the ownership of the country’s largest mall – iling ખરીદ 1.75 billion – to buy the disease retailer Simon Property Group and Brookfield Asset Management. Lawyers representing Jesse Penny told CBS Moneywatch that the acquisition would save about 60,000 jobs, lost if the company went into liquidation. They did not say how many stores would be saved as a result of the deal.
“From the beginning of this process it has been our goal that JC Penny will continue to serve customers for decades to come and this court approval fulfills that purpose,” said CEO Jill Soltau. Statement.
Under Jesse Penny’s new formation, the company is split into two companies. Simon and Brookfield own retail and assets operations assets, while Jesse Penny’s creditors control the company’s distribution centers and other real estate.
When Jesse Penny had 85,000 workers and more than 800 stores Filed for bankruptcy In the month of May. Debt billion debt The 100-year-old company has closed a number of brick-and-mortar sites in recent years amid the growth of online shopping.
This year, Jesse Penny has closed seven stores and plans to Off According to the government, a total of 153 Filing. The Texas company will shed about a third of its stores over the next two years, as it will be restructured, leaving only 600 locations open.
Soltau said the bankruptcy exit puts the department store “in a position to strengthen JC Penny’s long track record of caring for our partners, customers, vendor partners and communities.”
Planes in Texas, the chain will shed about a third of its stores over the next two years as it reorganizes, leaving only 600 locations open. Its lending expires on November 16 and the sale had to be closed by November 20 to keep the company out of business.
Simon Property has joined several retailers this year operating in its malls, including men’s clothing. Brooks Brothers, Fast-fashion seller Forever 21 And a denim store Lucky brand.
More than two dozen retailers have filed for bankruptcy during the coronavirus epidemic, including Neiman Marcus, J Crew And Lord & Taylor.
The Associated Press contributes to this report.
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