“Our goal from the start of this process has been to ensure that JC Penney will continue to serve its clients for decades to come and that court approval achieves that goal,” CEO Jill Soltau said in a statement.Under the new structure of JC Penney, the company is split into two entities. Simon and Brookfield own the retail and operating assets, while JC Penney’s creditors control the company’s distribution centers and other real estate assets.
JC Penney had 85,000 workers and more than 800 stores when itin May. Burdened with approximately $ 4 billion in debt, the more than 100-year-old company has closed many physical stores in recent years amid growing online shopping.
This year, JC Penney has closed seven stores and plans to close 153 in total, according to a government file. The Texan company will cut nearly a third of its stores over the next two years as it restructures, leaving just 600 locations open.
The exit from bankruptcy puts the department store in “a strong position to build on JC Penney’s long history of supporting our associates, customers, supplier partners and communities,” said Soltau.
The Plano chain in Texas will cut nearly a third of its stores over the next two years as it restructures, leaving just 600 locations open.
Simon Property has wound up several retailers this year that operate in its malls, including menswear clothier Brooks Brothers, fast fashion seller Forever 21 and denim store Lucky Brand.
More than two dozen retailers filed for bankruptcy during the coronavirus pandemic, including Neiman Marcus, J. Crew and Lord & Taylor.