Reuters was first to report that J.C. Penney Co Inc was nearing a bankruptcy rescue deal with landlords, averting a liquidation that would have threatened roughly 70,000 jobs and represented one of the most significant business collapses following the coronavirus pandemic. A competitor matched the Reuters exclusive and a company lawyer later confirmed the report during a court hearing. The deal would carve J.C. Penney into three pieces. In addition to the retail operations the landlords are purchasing, lenders would take control of two other entities housing some J.C. Penney stores and the retailer’s distribution centers.
Reuters first to report J.C. Penney reaches tentative rescue deal, averting liquidation; market reacts
Following the Reuters report, J.C. Penney shares jumped and ended trading on Wednesday up more than 100%.