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Mall owners Simon and Brookfield to rescue JCPenney from bankruptcy
Illustration: Aïda Amer/Axios
Simon Property Group (NYSE: SPG) and Brookfield Property Partners (Nasdaq: BPY) have tentatively agreed to acquire most of the retail operations of JCPenney, as part of a deal that will help the bankrupt retailer avoid liquidation.
Why it matters: The deal could save upwards of 70,000 jobs.
Details: The agreement values JCP at around $1.75 billion, with lenders putting up $300 million for both the company's distribution arm and ownership of 161 of its roughly 650 remaining stores. JCP also is in talks with Wells Fargo for $2 billion in new financing.
The bottom line: "Simon has already reached deals this year to save men’s suit maker Brooks Brothers and denim retailer Lucky Brand from bankruptcy, teaming up with the apparel licensing firm Authentic Brands Group to do so. It also previously teamed up with ABG and Brookfield to save Forever 21. Brookfield in May said it was planning to spend $5 billion to save retailers hurt by the pandemic," wrote CNBC reporter Lauren Thomas.
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