J.C. Penney is on track to exit bankruptcy by Thanksgiving, defying naysayers who believed the 118-year-old company was heading to the department store graveyard.
At the end of a 10-hour hearing Monday to review and exhaust all other prospects for Penney, U.S. Bankruptcy Court Judge David Jones approved the sale of the Plano-based retailer to its two largest landlords and its primary lenders.
In the end, the court decided that Penney still has value to its landlords, vendors and employees. It’s getting a chance to recover from the pandemic and try again to serve middle-income American households. Penney will exit into an uncertain environment altered by the pandemic on top of secular changes that were already rapidly transforming the retail business, but the only other alternative to a sale was liquidation, the court concluded.