The JCPenney store on the Queens Center Mall in the borough of Queens in New York.
Richard Levine | Corbis | Getty Images
Jill Soltau, CEO of J.C. Penney said Tuesday the bankrupt retailer expects to exit Chapter 11 before the holiday season.
The department store chain announced in a press release that it had taken another step towards a sale to US owners Brookfield Property Partners and Simon Property Group. It has submitted a draft asset purchase agreement that will bring it closer to a business.
Advances in the bankruptcy process could provide more clarity as Penney prepares for vacation buyers and potentially send vendors a clear message about their future. Like other retailers, it is tackling the coronavirus pandemic and recession.
The deal is pending court approval and other conditions. A hearing is scheduled for early November, the company said.
At a trial in September, Joshua Sussberg, of the Kirkland & Ellis law firm, said the malls' owners were working to secure an $ 800 million deal to save the company from bankruptcy. He said the move would save about 70,000 jobs and 650 businesses.
The retailer cleared other hurdles during the legal process. A group of creditors initially rejected the Brookfield and Simon deal.
On Tuesday, the company reiterated plans to own Brookfield and Simon and operate their retail properties. Meanwhile, 160 of its properties and distribution centers will become part of a separate real estate holding company owned by a group of their lenders.