JCPenney Signs Asset Purchase Agreement with Brookfield, Simon and First Lien Lenders, Charting Course for the Future

J. C. Penney Company, Inc. (OTCMKTS: JCPNQ) today announced that it has entered into an asset purchase agreement (“APA”) with Brookfield Asset Management, Inc (“Brookfield”), Simon Property Group (“Simon”) and a majority of the Company’s DIP and First Lien Lenders (“Majority First Lien Lenders”).

“Signing a definitive APA with Brookfield, Simon and our Majority First Lien Lenders allows us to move forward towards the completion of our financial restructuring – and we are looking forward to operating under new ownership outside Chapter 11 in advance of the 2020 holiday season,” said Jill Soltau, chief executive officer of JCPenney. “This transaction is a testament to the thousands of dedicated employees who have been working incredibly hard over the last several months under difficult circumstances. Our customers are at the heart of JCPenney and we look forward to serving them under the JCPenney banner for decades to come. Our team remains laser 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.”

Key terms of the APA are as follows:
*Brookfield and Simon will acquire substantially all of JCPenney’s retail and operating assets (“OpCo”) through a combination of cash and new term loan debt.
*The formation of separate property holding companies (“PropCos”), comprising 160 of the Company’s real estate assets and all of its owned distribution centers, which will be owned by the Company’s DIP and First Lien Lenders.
*The OpCo and PropCos will enter into master leases with respect to the properties and distribution centers moved into the PropCos (the “Master Lease Agreement”). JCPenney, Simon and Brookfield, and the Majority Lender Group have reached agreement on all outstanding business points in the Master Lease Agreement.
https://www.jcpnewsroom.com/news-releases/2020/1028_final_apa.html

Related Posts

E-commerce Spend Grows to $331.6 billion, as Consumers Trade Down to Cheaper Goods Online

Adobe released online shopping data for the first four months of 2024, covering the period from Jan. 1 to Apr. 30, 2024. Based on Adobe Analytics data, the report provides the most comprehensive view into U.S. e-commerce by analyzing commerce transactions online, covering over one trillion visits to U.S. retail sites, 100 million SKUs and 18 product categories. Adobe Analytics is part of Adobe Experience Cloud, relied upon by over 85% of the top 100 internet retailers in the U.S.* to deliver, measure and personalize shopping experiences online. Consumers spent $331.6 billion online from Jan. 1 to Apr. 30, 2024, up 7% year-over-year (YoY). The growth has been supported by stable spend in discretionary categories including electronics and apparel, along with a continued surge in grocery shopping online. Adobe expects the first half of 2024 to drive over $500 billion in spend online, representing 6.8% YoY growth.

Shutterfly and David’s Bridal Announce Expanded Marketing Partnership

Shutterfly, Inc. and David's Bridal formally announced an expanded partnership. The new collaboration builds off an already successful standing relationship, and makes Shutterfly the exclusively endorsed personalized wedding invitation and personalized photo product partner to David's Bridal. The deal gives Shutterfly direct access to the largest concentration of brides in the US through the David's Bridal website, dedicated emails, direct marketing communications and over 315 retail locations. In addition, brides will be able to choose from a new assortment of expertly curated wedding invitations and day-of stationery designed by David's Bridal beginning in early 2018. The collection will be available through the newly launched Wedding Shop by Shutterfly, and it will provide customers the unique ability to match their stationery "look and feel" with the corresponding David's Bridal color palette they select. Click Read More below for additional information.

Barnes & Noble Reports Fiscal 2018 Second Quarter Financial Results

Total sales for the second quarter were $791.1 million, declining 7.9% as compared to the prior year. Comparable store sales decreased 6.3%, with approximately half of this decline attributable to last year's release of Harry Potter and The Cursed Child. The balance of the decline was primarily due to non-book categories. "Comparable sales improved throughout the second quarter and into November," said Demos Parneros, Chief Executive Officer of Barnes & Noble, Inc. "Book sales continued to strengthen, and we saw improved traffic and conversion trends. As a result of the improving trends, we will continue to place a greater emphasis on books, while further narrowing our non-book assortment. We expect these improvements to continue as we head into the holiday season which, coupled with cost reductions, will enable us to achieve EBITDA of $180 million." Click Read More below for additional information.
Back To Top
×Close search
Search