Two of the country's biggest mall owners are close to a deal to bring Plano-based J.C. Penney out of bankruptcy.
The deal involves the Simon Property Group and Brookfield Property Partners. The two businesses own hundreds of shopping malls across the country.
Penney's lawyer Josh Sussberg announced the tentative pact, which could save an estimated 70,000 jobs and avoid liquidation, during a brief hearing in bankruptcy court Wednesday.
Sussberg said that Penneys would have an enterprise value of $1.75 billion, including $300 million in cash from the two landlords and $500 million in new debt.
"We are all committed to moving this quickly and saving J.C. Penney," Sussberg said during the court hearing.
The 118-year-old department store filed for Chapter 11 bankruptcy protection in mid-May.
As part of its bankruptcy reorganization, Penney's officials said they planned to permanently close nearly a third of its 846 stores in the next two years, according to NBCDFW.com. That would leave it with just over 600 locations.