J.C. Penney Reaches Temporary Deal to Avoid Bankruptcy

After filing for Chapter 11 bankruptcy in May, clothing giant J.C. Penney may be avoiding bankruptcy for the time being.

Simon Property Group and Brookfield Property Partners announced the deal in a brief hearing in bankruptcy court on Wednesday. The pact will save roughly 70,000 jobs as well as helping the company avoid liquidation.

J.C. Penney released a plan for bankruptcy earlier in the year, which included permanently closing about one-third of its stores. This would leave a little over 600 stores under the franchise.

Over two dozens retailers have filed for bankruptcy this year due to the ongoing COVID-19 pandemic.