Department store chain JCPenney has signed a definitive asset purchase agreement (APA) with Brookfield Asset Management, Simon Property Group and Majority First Lien Lenders.

Last week, JCPenney filed a draft asset purchase agreement (APA) with the two mall owners.

Under the APA, Brookfield and Simon will acquire substantially all of JCPenney’s retail and operating assets (OpCo) through a combination of cash and new term loan debt.

With this agreement, the company should complete its financial restructuring and emerge from Chapter 11 in advance of the 2020 holiday season under the new owner.

Financial details of the transaction remain undisclosed.

Speaking of the development, JC Penney chief executive officer Jill Soltau said: “This transaction is a testament to the thousands of dedicated employees who have been working incredibly hard over the last several months under difficult circumstances.

“Our customers are at the heart of JCPenney and we look forward to serving them under the JCPenney banner for decades to come.

“Our team remains laser-focused on implementing our Plan for Renewal to Offer Compelling Merchandise, Drive Traffic, Deliver an Engaging Experience, Fuel Growth and Build a Results-Minded Culture.”

Additionally, the agreement includes the formation of separate property holding companies (PropCos), which will be owned by the company’s DIP and First Lien Lenders.

PropCos will comprise of 160 of the company’s real estate assets and all of its owned distribution centres.

In May, JCPenney filed for bankruptcy in a Texas court after forcing to temporarily closing its then nearly 850 stores due to the pandemic.