Report: J.C. Penney Reaches Agreement to Stay Afloat

It seems J.C. Penney (OTC: JCPN.Q) has received a lifeline. According to a report by fashion industry journal WWD, an attorney representing the troubled retailer told a Texas bankruptcy court Wednesday afternoon that it reached a tentative agreement with landlords and creditors to stay alive as a company and to keep its stores open.

The group is led by top shopping mall owner Simon Property Group (NYSE: SPG) and real estate investor Brookfield Property Partners (NASDAQ: BPY). A letter of intent has been signed by the various parties, said the attorney, Joshua Sussberg of Kirkland & Ellis. Although such a document is non-binding, Sussberg said it will be used as the basis of a formal asset-purchase agreement.

Image source: J.C. Penney.

Source Fool.com