What: the major US player, which has been under protection law for months, entered into an asset purchase agreement to exit bankruptcy

Why it is important: department stores, especially in the US, were already struggling before the pandemic. Several filed for bankruptcy amid the covid crisis, including JC Penney. The latter has been acquired by mall operators to pave its way out bankruptcy.

JCPenney filed for Chapter 11 bankruptcy protection on 15 May and closed 154 stores this summer. Now it has entered into an asset purchase agreement with retail real estate giants Brookfield Asset Management Inc., Simon Property Group and other lenders. The deal will allow the retailer to move forward towards the completion of the financial restructuring plan ahead of the holiday season.

JCPenney Signs Asset Purchase Agreement, Charting Course for the Future