The iconic, yet struggling department store chain J.C. Penney is on the road to emerging from bankruptcy just in time for the upcoming holiday season.
A bankruptcy judge late Monday approved a deal to rescue the 118-year-old retailer, avoiding a total liquidation and saving what could be as many as 60,000 jobs.
The multiple-pronged rescue involves the sale of the now slimmed-down retailer for $1.75 billion to mall operators Simon Property Group (NYSE:SPG) and Brookfield Property Partners (NASDAQ:BPY), meanwhile lenders agreed to forgive $1 billion in debt in exchange for 160 properties and six distribution centers.
J.C. Penney was just one of more than two dozen retailers pushed into bankruptcy this year after the global health crisis forced shopkeepers to shut their doors for weeks..leaving them starved for cash and unable to pay the rent.
But J.C. Penney's troubles started long ago after it failed to adapt to the rise of online shopping.
And this holiday-shopping season could prove to be quite difficult...with the health crisis setting new records across the United States, consumers may be reluctant to go outdoors to shop, which leaves - even a smaller J.C. Penney - just as vulnerable as it was before bankruptcy.