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JC Penney CEO Jill Saltou said Tuesday that the bankrupt retailer expects to exit Chapter 11 before the holiday season.
The department store chain said in a news release that it had taken another step forward for sale to American mall owners Brookfield Property Partners and Simon Property Group. It has filed a draft asset purchase agreement, which moves it closer to a deal.
Progress in the bankruptcy process can add more clarity as Penny prepares for holiday shoppers and can send a clear message to sellers about its future. Like other retailers, it is also experiencing a coronovirus epidemic and recession.
The deal is still subject to court approval and other conditions. The company said that a hearing for this is scheduled in early November.
In a court hearing in September, Joshua Sausberg of the law firm Kirkland & Ellis said the owners of the mall were working to finalize a $ 800 million deal to save the company from bankruptcy. He said the move would save about 70,000 jobs and 650 stores.
The retailer has faced other hurdles during the legal process. A group of creditors initially opposed the agreement with Brookfield and Simon.
On Tuesday, the company reiterated plans to own Brookfield and Simon and operate its retail property. Meanwhile, 160 of its real estate assets and its distribution centers will become part of a company holding separate assets owned by a group of its lenders.