With the completion of the sale, JCPenney has access to $1.5bn of new financing

With the completion of the sale, JCPenney has access to $1.5bn of new financing

JCPenney has emerged from Chapter 11 bankruptcy after completing the sale of its retail and operating assets to Brookfield Asset Management and Simon Property Group.

With yesterday's (7 December) closing, the department store retailer will continue under new ownership and the JCPenney banner, and now has access to US$1.5bn of new financing. 

CEO Jill Soltau said the company has now accomplished its goal of putting JCPenney on a secure path for the future as a private company.

"Throughout the 2020 holiday season and beyond, we remain focused on implementing our Plan for Renewal to offer compelling merchandise, drive traffic, deliver an engaging experience, fuel growth and build a results-minded culture," she added.

JCPenney struck a deal with Brookfield and Simon in September  through which the firms would acquire most of its retail and operating assets for $1.75bn.

While last month, a US bankruptcy court approved its plan to create separate property holding companies for its 160 of its real estate assets and all of its owned distribution centres. The so-called 'PropCos' are expected to complete the restructuring process and emerge from Chapter 11 bankruptcy protection in the first half of 2021.

JCPenney, which is one of the US's largest apparel and home retailers, filed for Chapter 11 bankruptcy protection in May, after its fourth-quarter net income slid to US$27m from $75m a year earlier.