In the months following the announcement of new ownership in a deal that would save thousands of jobs, at least in the short term.
A Texas judge on Monday approved Simon Property Group and Brookfield Asset Management to buy દેશના 1.75 billion worth of illness retailers – the owners of the country’s largest malls. Lawyers representing Jesse Penny told CBS Moneywatch that the acquisition would save about 60,000 jobs, which would have been lost if the company had gone into liquidation. They did not say how many stores would be saved as a result of the deal.
“Our goal since the beginning of this process has been to ensure that Jesse Penny will continue to serve customers for decades to come and that this court approval will serve that purpose,” CEO Jill Soltau said in a statement.
Under the new creation of Jesse Penny, the company is divided 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 businesses.
When Jesse Penny had 85,000 workers and more than 800 storesIn the month of May. Approximately. The 100-year-old company has closed a number of brick-and-mortar sites in recent years amid a surge in online shopping, reducing debt by 4 4 billion.
This year, Jesse Penny has closed seven stores and plans to close a total of 153, according to a government 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 getting out of bankruptcy 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.”
Plans in Texas, the chain will unload about a third of its stores in the next two years as it restructures, leaving only 600 locations open. Its lending contract expires on November 16 and the sale had to be closed by November 20 to keep the company out of business.
Simon Property has set up several retailers this year operating in its malls, including the men’s Clothier Brooks Brothers, fast-fashion seller Forever 21 and the denim store Lucky Brand.
More than two dozen retailers have filed for bankruptcy during the coronavirus epidemic, including Niman Marcus, J. Crew and Lord & Taylor.
The Associated Press contributes to this report.