Plano-based JCPenney expected to sell to Simon and Brookfield for $1.75B

Details behind a $1.75 billion sale to Simon and Brookfield surfaced in a bankruptcy court hearing Sept. 9. (Liesbeth Powers/Community Impact Newspaper)
Details behind a $1.75 billion sale to Simon and Brookfield surfaced in a bankruptcy court hearing Sept. 9. (Liesbeth Powers/Community Impact Newspaper)

Details behind a $1.75 billion sale to Simon and Brookfield surfaced in a bankruptcy court hearing Sept. 9. (Liesbeth Powers/Community Impact Newspaper)

JCPenney is expected to enter into a $1.75 billion sale agreement with commercial real estate companies Simon Property Group and Brookfield Property Partners.

The sale is expected to move Plano-based JCPenney out of bankruptcy and prevent liquidation of its assets, according to news announced in a Sept. 9 hearing in U.S. Bankruptcy Court for the Southern District of Texas.

"Simon, Brookfield, the lenders, and the company, the creditors committee are all committed to moving this forward quickly and saving JCPenney as we know it," said Joshua Sussberg of Kirkland and Ellis law firm, who is representing JCPenney in this process.

He said details behind the sale are concrete but not official.

“[There] is a nonbinding but fully executed letter of intent," he told the judge. "And it comes together with significant documentation and the guts of an overall transaction, all of which will be documented in the near term.”

This sale is expected to save about 70,000 jobs, according to Sussberg.

JCPenney expects to emerge from the court-supervised auction process in advance of the 2020 holiday season, according to a company news release.

Representatives at Simon Property Group and Brookfield Property Partners could not be reached for comment.

JCPenney is headquartered in west Plano. Its former office campus, which was sold in 2017, is being redeveloped into a mixed-use project called The Campus at Legacy West. JCPenney's corporate offices remain the largest tenant in that development.

At the time of the bankruptcy filing in May, JCPenney had 850 department stores in the United States and Puerto Rico, including locations in Lewisville, Frisco, Plano and Flower Mound.

The Lewisville store at Music City Mall was slated for closure as part of the bankruptcy process. It's unclear what will happen with that store under the proposed agreement.

The department store at Plano's former Collin Creek Mall was slated to be sold for $15 million and torn down as part of a $1 billion redevelopment of the mall site, according to documents filed with the bankruptcy court in late August. That Collin Creek Mall location was still expected to liquidate and close, according to a JCPenney spokesperson.
By Gavin Pugh
Gavin has reported for Community Impact Newspaper since June 2017. His beat has included Dallas Area Rapid Transit, public and higher education, school and municipal governments and more. He now serves as the editor of the Grapevine, Colleyville, Southlake edition.


(Courtesy Adobe Stock)
Dove Road Country Store to undergo renovation in Grapevine

Dove Road Country Store received Grapevine City Council approval Aug. 18 to renovate its location at 1414 N. Dove Road, Grapevine.

Dr. Sam Rolon is a physician for Baylor St. Luke's Medical Group Creekside Family Medicine in The Woodlands. (Courtesy St. Luke's Health)
Q&A: St. Luke's physician shares advice on flu season, vaccine and prevention

The influenza vaccine is recommended for nearly all patients of all ages ahead of this year's flu season, Dr. Sam Rolon said.

student in mask
TEA launches statewide COVID-19 dashboard for public schools

The Texas Education Agency, in collaboration with the Texas Department of State Health Services, has launched its latest COVID-19 dashboard for positive cases in Texas public schools.

Gov. Greg Abbott said Sept. 17 that data from Texas' 22 hospital regions will dictate when certain businesses can reopen at 75% capacity. (Screenshot of Sept. 17 press conference)
Texas Gov. Greg Abbott: Retail stores, restaurants, office buildings, gyms can reopen at 75% capacity as early as Sept. 21

Nursing home and long-term care facilities will also be allowed to reopen for visitation as early as Sept. 24.

The upcoming Starbucks location will open along US 380 in Frisco. (Courtesy Starbucks)
New coffee shops in Frisco, Plano plus more popular DFW news

Read popular news from this week from the Dallas-Fort Worth area.

(Community Impact staff)
DATA: See local sales tax collection data in Grapevine, Colleyville, Southlake

The toll of the coronavirus pandemic on September sales tax collections had varying results in Grapevine, Colleyville and Southlake.

Hot Crab is now serving seafood dishes in Richardson. (Courtesy Hot Crab)
Seafood eatery Hot Crab opens in Richardson and more DFW news

Read the latest Dallas-Fort Worth business and community news.

Almost Home Animal Rescue's Heather Weeks, left, and Amy Desler pick up North Texas Giving Day yard signs. (Courtesy Kim Leeson/Communities Foundation of Texas)
North Texas Giving Day to aid more than 3,300 nonprofits

The 18-hour online event organized by Communities Foundation of Texas allows people to support local nonprofits and causes.

One in five children and adults have a learning disability, according to statistics from the National Center for Learning Disabilities. (Courtesy Adobe Stock)
Q&A: National Center for Learning Disabilities expert discusses challenges of special education, remote learning during pandemic

The NCLD's director of policy and advocacy spoke about the impacts of the COVID-19 pandemic on special education students and their development in and out of the classroom.

(Courtesy Adobe Stock)
Carroll ISD's new interim superintendent hails from a large North Texas school district

Carroll ISD announced Sept. 15 it had named an interim superintendent amid its search to find a permanent hire to replace retiring Superintendent David Faltys.

Dutch Bros. Coffee plans to open a Plano location next summer. (Courtesy Dutch Bros. Coffee)
Dutch Bros. Coffee coming to Plano and more DFW news

Read the latest Dallas-Fort Worth-area business and community news.

Shanna and Luis Argote signed the Southlake Safe pledge for the restaurant, Cool Greens. (Gavin Pugh/Community Impact Newspaper)
Southlake businesses open, get aid from chamber and city

Read the latest news from Southlake here.