The CEO of J.C. Penney announced that the company has filed a draft asset purchase agreement with two property owners that are interested in a sale. If the deal is completed, J.C. Penney might be able to exit Chapter 11 proceedings before the holidays. The potential deal would allow hundreds of stores to remain open and allow tens of thousands of people to keep their jobs.
As stores get ready for the holidays, many shoppers have been uncertain about J.C. Penney’s future after the company filed for Chapter 11 bankruptcy. In the beginning, several creditors made it difficult for J.C. Penney to arrange a deal with the property owners. However, the CEO clarified recently that J.C. Penney attends to go ahead with the deal.
In September, an attorney involved in the case said that J.C. Penney was negotiating an $800 million deal that would allow the company to pay off debts and finalize the bankruptcy proceedings. The next hearing on the case is scheduled for November.
Can filing for bankruptcy help you save your business?
If you’re unable to pay off your business debts, you might have to turn to bankruptcy as a last resort. However, filing for bankruptcy doesn’t mean that you have to shut down your business. You might be able to save your company and start making a profit again.
An attorney may be able to help you file for Chapter 11 bankruptcy so that you can restructure your debts and make them easier to pay off. Since you won’t be selling off your business, you can continue to operate your business while managing a payment plan. Your attorney may help you file a petition for bankruptcy, gather documents and figure out how to repay your debts.