According to published reports, the J.C. Penney Company Inc., has entered an asset purchase agreement with Brookfield Asset Management Inc, Simon Property Group and a majority of the company’s first lien lenders.
The sale includes J.C. Penney, 2021 North Highland Avenue, in the Old Hickory Mall.
The iconic 118-year-old retailer had filed for bankruptcy in a Texas court in May after the COVID-19 pandemic forced it to temporarily close its then nearly 850 stores.
The company said it expects to operate outside Chapter 11 before the holiday season.
Under the agreement, Brookfield and Simon, which are the retailer’s two biggest landlords, will buy substantially all of J.C. Penney’s retail and operating assets through a combination of cash and new term loan debt.
“Signing a definitive APA (asset purchase agreement) with Brookfield, Simon and our Majority First Lien Lenders allows us to move forward towards the completion of our financial restructuring,” J.C. Penney said in a statement.
In May, it was reported that Amazon was reportedly in talks to acquire J.C. Penney.
It was viewed that the acquisition of J.C. Penney could potentially bolster the online retailer’s burgeoning apparel business.
It was also believed Amazon was interested in acquiring some of the stores that J.C. Penney considered selling and use them as distribution outlets.
J.C. Penney filed for Chapter 11 bankruptcy reorganization Friday, May 15, citing the coronavirus pandemic as a core reason.
As part of its business plan, which was filed with the Securities and Exchanges Commission, J.C. Penney planned to permanently close 242 stores, or about 30 percent of its stores.
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(PHOTO: J.C. Penney, Old Hickory Mall)
