Author Topic: J.C. Penney rescue deal approved in bankruptcy court  (Read 153 times)

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Offline PeteS in CA

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J.C. Penney rescue deal approved in bankruptcy court
« on: November 10, 2020, 07:01:20 PM »
J.C. Penney rescue deal approved in bankruptcy court

https://www.reuters.com/article/us-jc-penney-bankruptcy-idUSKBN27Q0FB

Quote
(Reuters) - A U.S. judge on Monday approved a deal to rescue J.C. Penney Co Inc from bankruptcy proceedings precipitated by the coronavirus pandemic, averting a liquidation that would have put the beleaguered department store chain out of business and jeopardized tens of thousands of jobs.

The U.S. Bankruptcy Court for the Southern District of Texas approved the deal, which will allow the 118-year-old retailer to emerge from bankruptcy before the upcoming holiday season, the company said in a statement. The rescue deal is expected to save approximately 60,000 jobs.

The transaction contains multiple parts. Lenders led by H/2 Capital Partners will forgive $1 billion in debt in exchange for 160 properties and six distribution centers. Mall operators Simon Property Group and Brookfield Property Partners will acquire the company’s slimmed-down retail operations for $1.75 billion in cash and debt.

I don't wish JCP ill, but the new manglement has to understand that they are building a new business model of brick & mortar stores plus online sales almost from scratch. In a business climate that is challenging even for healthy retailers. Returning to Staus Quo Ante-Covid won't work.
US Coronavirus timeline: https://www.gopbriefingroom.com/index.php/topic,395099.msg2169385.html#msg2169385

China Coronavirus timeline: https://www.gopbriefingroom.com/index.php/topic,395099.msg2184146.html#msg2184146

Achhhhh ... ssss ... sss ... I HATES Clicksbaitsesssssss!

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Offline jmyrlefuller

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Re: J.C. Penney rescue deal approved in bankruptcy court
« Reply #1 on: November 10, 2020, 08:02:24 PM »
If anyone can build a brick-and-mortar retail operation from scratch, it is the owner of those brick-and-mortar locations. And that, right now, is in abundance.