Though just a few short months ago, J.C. Penney was on the verge of filing for bankruptcy, a lifesaver has been extended.
Mall owners Simon Property Group and Brookfield Property Partners are closing in on a deal that would buy J.C. Penney, and save the retail chain from bankruptcy, reports NBC DFW.
JC Penney lawyer Josh Sussberg announced the deal, which would save roughly 70,000 jobs and avoid liquidation, during a hearing in bankruptcy court Wednesday afternoon. He said during the court hearing, "We are all committed to moving this quickly and saving J.C. Penney."
J.C. Penney filed for Chapter 11 bankruptcy protection in May, and planned to permanently close nearly a third of its 846 stores in the next couple of years, leaving it with just over 600 locations.
After the deal's complete, Penney's will be left with $1 billion in cash.
Neither Simon nor Brookfield responded to requests for comment regarding the deal.