According to court documents filed on Thursday last week, the retailer plans to move forward with its proposed deal of selling its department store operations to Simon Property Group and Brookfield Property Partners. But until a deal is finalized, the company plans to hold back on liquidating its assets.
Securing a deal is especially critical for the survival of the century-old retailer, which currently employs tens of thousands of workers throughout the country. Keeping the business afloat, however, has been easier said than done. At this point, it has been one month since Joshua Sussberg of Kirkland & Ellis, one of the retailer’s bankruptcy attorneys, announced in a court hearing that Simon and Brookfield came to an agreement to acquiring JCPenney. But, no formal asset purchase agreement has been filed so far.
At this point, JCPenny seems to have more cash available than it had originally projected. While that may sound great for a bankrupt company, Sussberg notes that the company has a larger than expected reserve of cash due to the fact that it is not receiving as many goods from its suppliers as it had planned. “You cannot sell what you don’t have,” Sussberg said.
A series of hearings have been set from October 16 through November which will address the sale of JCPenny’s and its bankruptcy plans.