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JCPenney Eyes Exit from Bankruptcy Before Holiday Season
Plano-based JCPenney said Tuesday it had filed a draft asset purchase agreement (APA) to sell the company out of bankruptcy. As reported previously, Brookfield Asset Management and Simon Property Group will acquire substantially all of JCPenney’s retail and operating assets (OpCo) through a combination of cash and new term loan debt.
The agreement also calls for the formation of separate property holding companies (PropCos), comprising 160 of JCPenney’s real estate assets and all of its owned distribution centers, which will be owned by the retailer’s debtor-in-possession and first lien lenders. The OpCo and PropCos will enter into a master lease with respect to the properties and distribution centers moved into the PropCos.
“This is another important milestone in our restructuring plan, bringing us one step closer to finalizing the APA, closing the sale process and exiting Chapter 11 ahead of the December 2020 holiday season,” said JCPenney CEO Jill Soltau.
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