J.C. Penney was one of the lucky ones, if you can call any company in bankruptcy lucky. The retailer filed for Chapter 11 in May without a definitive plan for what would come next.
The company had a reorganization agreement with lenders, but it came with contingencies and milestones that could potentially have allowed for liquidation. It was also quietly for sale. In other words, all options were open reorganization, sale, liquidation. Amid grueling and protracted sale negotiations, David Jones, the federal judge overseeing Penney’s case, allowed Penney to extend its deadlines to let talks to continue. Jones justified doing so by saying that “the alternative is the death of an entity.”
Penney got its deal, with two major landlords a…
Read the full article at: https://www.retaildive.com/news/death-of-an-entity-10-retailers-that-liquidated-this-year/587775/
