J.C. Penney Makes a Deal with Mall Owners

By Sheridan Fifer

Attorneys for J.C. Penney warned at the end of August that negotiations with bidders had stalled. But the bankrupt department store retailer has since announced that it has reached an agreement with mall owners and lenders that could rescue J.C. Penney from liquidation. That isn't all an acquisition like this would save: 600 stores and 70,000 jobs could survive the bankruptcy proceedings as a result, provided the deal doesn't fall apart. According to Joshua Sussberg, a lawyer representing J.C. Penney, the enterprise value of the deal, which includes the value of the debt the new owners would assume, is about $1.75 billion. 

Mall property companies have been getting more aggressive in recent years with a strategy of acquiring struggling tenants to preserve their rental income and minimize vacancies.

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