118-year-old retailer, J.C. Penney is on the way to emerge from bankruptcy after a US bankruptcy court approved the sale of an asset purchase agreement.
In September, the retail giant reached a deal to sell its retail business and mall operators to Simon Property Group and Brookfield Property Partners, two major U.S. mall operators, after filing for Chapter 11 in May due to sudden changes instigated by the COVID-19.
Jill Soltau, CEO, JCPenney said, “Our goal from the beginning of this process has been to ensure J.C. Penney will continue to serve customers for decades to come and this court approval accomplishes that objective.”
“With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the JCPenney banner,” Jill added.
Though the apparel brand faces a difficult battle to appeal to consumers this holiday season as they stay away from the malls and stores for safety reasons and shop online more.
In the meantime, Amazon and big discounters like Walmart and Target are only becoming stronger as they offer low prices and one-stop shopping.
JCPenney will shut nearly a third of its stores in the next two years as it reforms, leaving just 600 locations open.